CIRD11650 - Intangible assets within CTA09/PART8: FA02 rule: general conditions: asset acquired on or after 1 April 2002 from related party in qualifying circumstances: asset created on or after 1 April 2002

CTA09/PART8/S882 (5)

This is the third of the three qualifying circumstances outlined in CIRD11625.

An asset ‘acquired on or after 1 April 2002’ (see CIRD11670 and CIRD11690) from a ‘related party' (see CIRD45105 onwards) satisfies the general conditions if it was ‘created on or after that date’ (by anybody) for the purposes of Part 8.

The term ‘created on or after 1 April 2002’ has a specific meaning for the purposes of applying the FA02 rule - it is not sufficient for an asset to be created in the ordinary legal sense of the word. An asset is only created on or after 1 April 2002 for the purposes of Part 8 if and when expenditure is incurred on the creation of the asset on or after 1 April 2002.

The rules outlined in CIRD11670 apply in determining when an asset was created.

Where in accordance with those rules an asset was partly created before and partly on or after 1 April 2002 an apportionment of expenditure to deemed separate assets will be necessary (as described in CIRD11670) unless the asset also satisfies one or other of the first two qualifying conditions outlined in CIRD11625.

Where exceptionally the CG rules apply to the disposal of the asset by a transferor the asset may remain outside Part 8 if it falls within the rule described in CIRD11660.