Commentary on Sections Overview Overview Section 863: Asset becoming chargeable intangible asset
2206.This section gives an accounting value deemed acquisition rule in three particular cases. It is based on paragraph 110 of Schedule 29 to FA 2002.
2207.Subsection (1) lists the cases to which the section applies. In each, without changing ownership, the asset becomes a “chargeable intangible asset”. That is, any gain on realisation would fall within the intangible fixed assets rules (see section 741).
2208.This is the obverse of the rule in section 859 which applies when an asset ceases to be a chargeable intangible asset.