Section 894 | The preserved status conditions etc

(1)For the purposes of section 893(1) the other asset meets the preserved status conditions if subsections (2) and (3) apply.

(2)This subsection applies if on or after 1 April 2002 the other asset—

(a)has been a pre-FA 2002 asset in the hands of the transferor at a time when the transferor and the acquiring company were related parties, or

(b)has been a pre-FA 2002 asset in the hands of any other person at a time when—

(i)the other person and the acquiring company were related parties, or

(ii)the other person and the transferor were related parties.

(3)This subsection applies if the other asset has not at any time on or after 5 December 2005 been a chargeable intangible asset in the hands of—

(a)the acquiring company,

(b)a person who is a related party in relation to that company, or

(c)the transferor.

(4)It does not matter for the purposes of section 893(1)(b) who created the acquired asset.

(5)Any apportionment necessary for the purposes of section 893(3) must be made on a just and reasonable basis.

(6)Sections 883 to 889 (provisions explaining when assets are treated as created or acquired) apply for the purposes of section 893 as they apply for the purposes of section 882.

(6A)Section 882(5A) to (5D) applies for the purposes of section 893 and this section.^F1

(7)Expressions used in this section have the same meaning as in section 893.