Section 778 | Relief on reinvestment: acquisition of group company: introduction

(1)Chapter 7 (roll-over relief in case of realisation and reinvestment) applies in accordance with section 779 if—

(a)a company (“A”) acquires a controlling interest in another company (“B”), and

(b)intangible fixed assets (“underlying assets”) are held by B or one or more other companies within subsection (2).

(2)A company is within this subsection if—

(a)it was not in the same group as A before the acquisition, and

(b)as a result of the acquisition it is in the same group as A immediately after it.

(3)For this purpose A acquires a controlling interest in B if—

(a)A and B are not in the same group,

(b)A acquires shares in B, and

(c)as a result of the acquisition A and B are in the same group immediately after the acquisition.

(4)A claim for relief under Chapter 7 made because of section 779 must be made jointly by A and the company or companies holding the underlying assets concerned.

(5)In this section and section 779 expressions that are defined for the purposes of Chapter 7 have the same meaning as in that Chapter.