Section 895 | Assets acquired in connection with disposals of pre-FA 2002 assets

(1)This section applies if—

(a)a person disposes of an asset which is a pre-FA 2002 asset in the person's hands at the time of the disposal,

(b)at any time before 1 July 2020 a company acquires an intangible fixed asset directly or indirectly in consequence of the disposal or otherwise in connection with it,^F1

(c)the company and the person are related parties at the time of the disposal, and

(d)the acquired asset would be a chargeable intangible asset in the hands of the company at the time of the acquisition apart from this section.

(2)The acquired asset is treated for the purposes of this Part as a pre-FA 2002 asset in the company's hands.

(3)For the purposes of this section—

(a)“asset”, in relation to any disposal, means any asset for the purposes of TCGA 1992,

(b)a person “disposes of” an asset if, for the purposes of that Act, the person makes a part disposal of the asset or any other disposal of it, and

(c)the time at which a disposal of an asset is made is the time at which it is made for the purposes of that Act.

(4)For the purposes of this section it does not matter whether—

(a)the asset that the person disposes of is the same asset as the acquired asset,

(b)the acquired asset is acquired at the time of the disposal, or

(c)the acquired asset is acquired by merging assets or otherwise.

(5)Section 882(5A) to (5D) applies for the purposes of this section.^F2