Section 898 | Relief where assets disposed of on or after 1 April 2002

(1)This section applies if a company disposes of a pre-FA 2002 asset on or after 1 April 2002.

(2)Chapter 7 (roll-over relief in case of realisation and reinvestment) applies as if—

(a)references to the realisation of the old asset were references to its disposal,

(b)references to its being a chargeable intangible asset were references to its being a chargeable asset within TCGA 1992 (see section 900),

(c)references to the proceeds of its realisation were references to the net proceeds of disposal under that Act (see subsection (3)), and

(d)references to its cost recognised for tax purposes were references to the cost under that Act (see subsection (4)).

(3)For the purposes of subsection (2)(c) the net proceeds of disposal under TCGA 1992 are taken to be the amount or value of the consideration for the disposal, less any incidental costs of making the disposal that would be allowable as a deduction under section 38(1)(c) of that Act.

(4)For the purposes of subsection (2)(d) the cost under TCGA 1992 is taken to be an amount equal to the difference between—

(a)the net proceeds of disposal (as defined in subsection (3)), and

(b)the amount of the chargeable gain on the disposal.

(5)Section 850 (part realisation involving related party acquisition: exclusion of roll-over relief) does not apply in a case where Chapter 7 applies because of this section.

(6)References in this section to the disposal of an asset have the same meaning as in TCGA 1992.