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(b) since that time the asset has been disposed of otherwise than by a disposal to which section 617 applies,

but, without prejudice to subparagraph (8), where, on a disposal to which section 617 does not apply, an asset would cease to be a pre-entry asset by virtue of this subparagraph and the company making the disposal retains any interest in or over the asset in question, that interest shall be a pre-entry asset for the purposes of this Schedule.

(9) (a) This section shall not apply to the acquisition by a company (in this subsection referred to as “the transferee”) of a specified intangible asset where the acquisition is from another company (in this subsection referred to as “the transferor”) and, by virtue of section 615(2) or 617(1), the transferee is treated as having acquired the asset for a consideration of such amount as would secure that neither a gain nor a loss would accrue on the transferor’s disposal of the asset to the transferee.

(b) Notwithstanding paragraph (a), where the transferor and transferee make a joint election under section 615(4) or 617(4), the transferee shall be entitled to claim an allowance under section 284 as applied by this section in respect of capital expenditure incurred by it on acquiring the specified intangible asset from the transferor.

“relevant asset”, in relation to a qualifying trade means, an asset (including goodwill but not including shares or securities or other assets held as investments) which is, or is an interest in, an asset used for the purposes of that trade other than an asset on the disposal of which no gain accruing would be a chargeable gain or an asset the consideration for the acquisition of which is determined by section 617 or section 631;

(b) a transfer of an asset in relation to which section 617 applies, or

(i) sections 617 to 620 section 617 (other than paragraphs (b) and (c) of subsection (1)), section 618 (with the omission of the words “to which this section applies” in subsections (1)(a) and (2), of “such” in subsection (1)(c) and of subsection (3)), section 619(2) (with the substitution for “in the course of a disposal to which section 617 applies” of “at a time when both were members of the group”) and section 620(2) (with the omission of the words “to which this section applies”) shall apply in relation to non-resident companies which are members of a non-resident group of companies as they apply in relation to companies resident in the State which are members of a group of companies, and

(i) sections 617 to 620 section 617 (other than paragraphs (b) and (c) of subsection (1)), section 618 (with the omission of the words “to which this section applies” in subsections (1)(a) and (2), of “such” in subsection (1)(c) and of subsection (3)), section 619(2) (with the substitution for “in the course of a disposal to which section 617 applies” of “at a time when both were members of the group”) and section 620(2) (with the omission of the words “to which this section applies”) shall apply in relation to non-resident companies which are members of a non-resident group of companies as they apply in relation to companies resident in the State which are members of a group of companies, and

(a) subject to sections 617(5), 621(1) and 623(7), a reference to a company or companies shall apply only to a company or companies, as limited by subsection (2), being a company or, as the case may be, companies which, by virtue of the law of a relevant Member State, is or are resident for the purposes of tax in such a relevant Member State, and for this purpose—

(i) section 617(1), and

(b) section 589 shall not apply where the transfer is a disposal to which section 617(1) applies.

(1) Where a company which is or has been a member of a group of companies disposes of an asset which it acquired from another member of the group at a time when both were members of the group in the course of a disposal to which section 617 applies , section 555 shall apply in relation to any capital allowances made to the other member (in so far as not taken into account in relation to a disposal of the asset by that other member), and so on as respects previous transfers of the asset between members of the group, but this shall not be taken as affecting the consideration for which an asset is deemed under section 617(1) to be acquired.

(1) Where a company which is or has been a member of a group of companies disposes of an asset which it acquired from another member of the group at a time when both were members of the group in the course of a disposal to which section 617 applies , section 555 shall apply in relation to any capital allowances made to the other member (in so far as not taken into account in relation to a disposal of the asset by that other member), and so on as respects previous transfers of the asset between members of the group, but this shall not be taken as affecting the consideration for which an asset is deemed under section 617(1) to be acquired.

(2)(a) Section 556 shall apply in relation to a disposal of an asset by a company which is or has been a member of a group of companies, and which acquired the asset from another member of the group at a time when both were members of the group in the course of a disposal to which section 617 applies , as if all members of the group for the time being were the same person, and as if the acquisition or provision of the asset by the group, so taken as a single person, had been the acquisition or provision of the asset by the member disposing of the asset.

(II) a disposal to which section 617 applies,

(2)(a) Where this section applies in relation to a holding, section 621 shall apply in relation to any disposal of any shares or securities comprised in the holding, whether the disposal is by the first company or by any other company to which the holding is transferred by a transfer to which section 617 applies, as if the distribution were a depreciatory transaction and, if the companies concerned are not members of a group of companies, as if they were.

(1) Where a company disposes of an asset used for the purposes of a trade carried on by it in the State to another company which holds all of the securities representing the company’s capital and but for this section the companies would not be treated in accordance with section 617 in respect of the asset, then, if—

sections 617 to 619 shall apply as if the companies were resident in the State.

(2) Sections 617 and 621 to 626 shall apply with any necessary modifications in relation to capital gains tax to which a company is chargeable on chargeable gains accruing to the company on a relevant disposal as they apply in relation to corporation tax on chargeable gains, and references in those sections to corporation tax shall be construed as including references to capital gains tax.

(ii) the transfer is a transfer to which section 617 applies, and

(ii)section 617(1),