Section 900C | When an intangible fixed asset is a restricted asset: the second case

(1)An intangible fixed asset of a company (“the asset concerned”) is a restricted asset if—

(a)the company acquired the asset concerned on or after 1 July 2020,

(b)the company acquired the asset concerned from a person who at the time of the acquisition was a related party in relation to the company, and

(c)the asset concerned is within subsection (2).

(2)The asset concerned is within this subsection if—

(a)the asset concerned was created on or after 1 July 2020,

(b)at no time has the asset concerned been the subject of a relieving acquisition,

(c)the value of the asset concerned derives in whole or in part from another asset (“the other asset”), and

(d)the other asset was a pre-FA 2002 asset or a restricted asset in the hands of any company on the date the asset concerned was created.

(3)The condition in subsection (2)(d) is to be treated as met if—

(a)the other asset was held by a person other than a company on the date the asset concerned was created,

(b)on the date the asset concerned was created that person was a related party in relation to a company, and

(c)the other asset would have been a pre-FA 2002 asset or a restricted asset in the hands of that company on the date the asset concerned was created had that company acquired the other asset from that person immediately before that date.

(4)For the purposes of this section the cases in which the value of an asset may be derived from any other asset include any case where—

(a)assets have been merged or divided,

(b)assets have changed their nature, or

(c)rights or interests in or over assets have been created or extinguished.