Corporation Tax Act 2009 section 879P

Date of acquisition of relevant asset

Section 879P establishes when a company is treated as having acquired a relevant asset for the purposes of the intangible fixed assets rules, where the acquisition takes place under a contractual obligation.

• Where a company acquires a relevant asset under an unconditional contract, the acquisition date is the date the company first became bound by that obligation, or the date the obligation became unconditional, whichever is later.
• An obligation is considered unconditional if no party can vary or cancel it by exercising any right, whether contractual or otherwise.
• This rule determines the effective acquisition date for Chapter 15A purposes, which may differ from the date the asset is actually transferred or delivered.
• The provision ensures that the tax treatment aligns with the point of firm commercial commitment rather than the date of physical or legal completion.