CIRD20020 - Reinvestment relief: general
matters and conditions to be satisfied: outline of detailed
guidance
FA02/SCH29/PARA37 - 45
Conditions to be satisfied before relief is available
Reinvestment relief is only available if:
- a ‘chargeable intangible
asset’ (including goodwill) within Schedule 29 throughout the
period held by a company or for a substantial part of that period (
CIRD20035) is realised (
CIRD13210), or
- there is a disposal of another intangible
asset (including goodwill) leading to a gain within the CG code (
CIRD20050), and
- the realisation of the asset:
- generates net proceeds which exceed the cost of
that asset (or a proportionate part of that cost where the asset is
only partly realised) (
CIRD20060), and
- is an actual realisation not a deemed realisation
(
CIRD20070) (though this rule is relaxed
for certain deemed realisations in the context of degrouping - see
CIRD20460),
- does not arise on a part realisation to a related
party - see
CIRD20080 (this restriction does not
apply to the part disposal of assets within the CG code),
- the investment in the ‘new’
assets:
- is made within the permitted period (
CIRD20110), and
- takes the form of expenditure which is capitalised
in the company’s accounts (
CIRD20120),
- is in assets which are within Schedule 29
immediately after the expenditure is incurred (
CIRD20130), and
- is a real investment in a new asset and not a
deemed acquisition or reacquisition (though the actual
reacquisition of the asset realised qualifies) (
CIRD20140), and
- a valid claim to the relief is made (
CIRD20150).
Computation
See
CIRD20200 onwards for the computation
of the relief where the conditions set out above are satisfied.
Provisional relief
Provisional relief is possible under the procedure described in
CIRD20015.
Comparison with CG roll-over relief
See
CIRD20025 for a summary of points of
similarity and difference between the two reliefs.
