The conditions for the degrouping adjustment to apply are as follows:

Company A has transferred an intangible fixed asset to company B;

The relevant asset is a ‘chargeable intangible asset’ (CIRD20035) in the hands of A immediately before the transfer and in the hands of B immediately after the transfer;

B must have been a member of the same group as A from the time of the transfer, or have become a member subsequently;

B must leave the group after the transfer and before six years have elapsed from the date of the transfer; and

The degrouping is not the result of a merger (CIRD40580).

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