Section 900D | When an intangible fixed asset is a restricted asset: the third case ^F1

(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, and

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

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

(a)the asset concerned was acquired by any company on or after 1 July 2020 directly or indirectly as a consequence of, or otherwise in connection with, the realisation by another person of an asset (“the other asset”),

(b)that company and that other person were related parties at the time of the realisation of the other asset,

(c)the other asset was a pre-FA 2002 asset or a restricted asset in the hands of any company at any time during the period beginning with 1 July 2020 and ending with the time of the realisation mentioned in paragraph (a),

(d)the other asset was not the subject of a relieving acquisition at any time during the period beginning with 1 July 2020 and ending with the time of the realisation mentioned in paragraph (a), and

(e)the asset concerned has not been the subject of a relieving acquisition at any time after the realisation mentioned in paragraph (a).

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

(a)immediately before 1 July 2020 the other asset was held by a person that was not a company,

(b)immediately before 1 July 2020 that person was a related party in relation to a company, and

(c)the other asset would have been a pre-FA 2002 asset in the hands of that company on 1 July 2020 had that company acquired the asset from that person immediately before that date.

(4)For the purposes of subsection (2) it does not matter whether—

(a)the other asset is the same as the asset concerned,

(b)the asset concerned is acquired at the time of the realisation of the other asset, or

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