Section 777 | Relief on realisation and reinvestment: application to group member

(1)This section deals with the application of Chapter 7 (roll-over relief in case of realisation and reinvestment) in relation to a company that is a member of a group.

(2)Chapter 7 does not apply if the expenditure on other assets is expenditure on the acquisition of assets from another member of the same group by a tax-neutral transfer.

(3)Chapter 7 applies as if two companies (“A” and “B”) are the same person if—

(a)the realisation of the old asset is by A,

(b)at the time of the realisation A is a member of a group,

(c)the expenditure on other assets is by B,

(d)B is a member of the same group as A at the time the expenditure is incurred (“the expenditure time”),

(e)B is not a dual resident investing company within the meaning of section 949 of CTA 2010 (dual resident investing companies) at the expenditure time,^F1

(f)immediately after the expenditure time the other assets are chargeable intangible assets in relation to B, and

(g)both A and B make a claim for relief under Chapter 7.

(4)Expressions used in this section that are defined for the purposes of Chapter 7 have the same meaning in this section.

(5)In particular, see section 754 for the meaning of “the old asset” and “the other assets”.