Section 357OL | Realisation and acquisition of fungible assets ^F1

(1)Subsection (2) applies if—^F1

(a)a company realises a fungible asset, and^F1

(b)apart from section 357OK(2), the asset would be treated as part of a single asset comprising both pre-commencement assets and assets that are not pre-commencement assets.^F1

(2)The realisation is treated as diminishing the single asset of the company comprising pre-commencement assets in priority to diminishing the single asset of the company comprising assets that are not pre-commencement assets.^F1

(3)Fungible assets acquired by a company that would not otherwise be treated as pre-commencement assets are so treated so far as they are identified, in accordance with the following rules, with pre-commencement assets realised by the company.^F1

(4)Rule 1 is that assets acquired are identified with pre-commencement assets of the same kind realised by the company within the period beginning 30 days before and ending 30 days after the date of the acquisition.^F1

(5)The reference in subsection (4) to assets “of the same kind” is to assets that are, or but for section 357OK(2) would be, treated as part of a single asset because of section 858 of CTA 2009.^F1

(6)Rule 2 is that assets realised earlier are identified before assets realised later.^F1

(7)Rule 3 is that assets acquired earlier are identified before assets acquired later.^F1

(8)In this section—^F1

“fungible asset” means an intangible fixed asset to which section 858 of CTA 2009 applies;

“realisation”, in relation to a fungible asset, has the same meaning as in Part 8 of CTA 2009 (see sections 734 and 856 of that Act).