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In force since 2026-04-01, as the publisher states.
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Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.
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(1) No credit is to be brought into account for the purposes of this Part in respect of the reversal of a debit disallowed by section 324(1). (2) This section does not apply if fair value accounting is used. (3) See also paragraph 61 of Schedule 2 (restriction on bringing into account credits resulting from reversal of debits disallowed in a period of account beginning before 1 January 2005).
Propose a change(1) This section applies if a government investment in a company is written off by the release of a liability to pay any amount under a debtor relationship of the company. (2) The company is not required to bring into account a credit for the purposes of this Part in respect of the release. (3) Section 94 of CTA 2010 (write-off of government investment) applies for interpreting the reference in subsection (1) to a government investment in a company being written off as it applies for the purposes of Chapter 7 of Part 4 of that Act.
Propose a change(1) This section applies for an accounting period of a company (“the loss period”) if— (a) apart from this section, a loss arising in connection with a loan relationship of the company would fall to be brought into account for the purposes of this Part, and (b) the loss is wholly or partly referable to a time when the relationship was not subject to United Kingdom taxation. (2) The amounts brought into account for the loss period for the purposes of this Part must be such as to secure that none of the loss referable to a time when the relationship was not so subject is treated for those purposes as arising in the loss period or any other accounting period of the company. (3) For the purposes of this section a loss is referable to a time when a relationship is not subject to United Kingdom taxation so far as, at the time to which the loss is referable, the company would not have been chargeable to corporation tax in the United Kingdom on any profits arising from the relationship. (4) If the company was not a party to the relationship at the time to which the loss is referable, subsection (3) applies as if the reference to the company were a reference to the person who at that time was in the same position as respects the relationship as is subsequently held by the company. (5) An amount which would be brought into account for the purposes of this Part in respect of any matter apart from this section is treated for the purposes of section 464(1) (amounts brought into account under this Part excluded from being otherwise brought into account) as if it were so brought into account. (6) Accordingly, that amount must not be brought into account for corporation tax purposes as respects that matter either under this Part or otherwise. (7) This section does not apply if fair value accounting is used.
Propose a change(1) The reference in section 306A(1) to the profits and losses arising to a company from its loan relationships and related transactions includes a reference to exchange gains and losses so arising. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) But subsection (1) does not apply to an exchange gain or loss of a company so far as it— (a) arises as a result of the translation of the assets, liabilities, income and expenses of all or part of the company's business from the functional currency of the business, or that part of the business, into another currency, and (b) has been recognised as an item of other comprehensive income. (3A) In subsection (3)— (a) the reference to the functional currency of a business or part of a business is a reference to the currency of the primary economic environment in which the business or part operates, and (b) “assets, liabilities, income and expenses” and “item of other comprehensive income” each has the meaning that it has for accounting purposes. (3B) No amount is to be brought into account for the purposes of this Part in respect of an exchange gain or loss of an investment company (within the meaning of section 17 of CTA 2010) which would not have arisen but for a change in the company's functional currency (within the meaning of section 17(4) of that Act) as between— (a) the period of account of the company in which the gain or loss arises, and (b) a period of account of the company ending in the 12 months immediately preceding that period. (3C) But subsection (3B) does not apply to an exchange gain or loss arising at a time when an election under section 9A of CTA 2010 (designated currency of UK resident investment company) has effect in relation to the company. (4) The Treasury may by regulations make provision— (a) excluding exchange gains or losses of a specified description from being brought into account for the purposes of this Part, (b) requiring exchange gains or losses of a specified description which would not otherwise be brought into account for the purposes of this Part to be brought into account in specified circumstances, (c) as to the way in which, including the currency by reference to which, any exchange gains or losses to be brought into account as a result of provision made under paragraph (b) are to be calculated, and (d) as to the way in which any such exchange gains or losses are to be brought into account. (4ZA) For the purposes of subsection (4)(b), it does not matter whether the exchange gains or losses would otherwise be excluded from being brought into account as a result of regulations under subsection (4)(a) or otherwise. (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) The reference in subsection (4) to bringing exchange gains or losses into account is a reference to bringing them into account— (a) for the purposes of this Part as credits or debits arising to a company from its loan relationships, or (b) for the purposes of corporation tax on chargeable gains. (7) The regulations may— (a) make different provision for different cases, and (b) make provision subject to an election or to other specified conditions. (8) For the meaning of references to exchange gains or losses from loan relationships, see section 475.
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Propose a change(1) This section applies if— (a) a company may enter into a loan relationship or related transaction but has not yet done so, (b) it incurs any expenses for purposes connected— (i) with entering into it, or (ii) with giving effect to any obligation which might arise under it, and (c) had the company entered into the relationship or transaction, the expenses would be expenses within section 306A(1)(c). (2) The expenses are treated as expenses in relation to which debits may be brought into account in accordance with section 307(2) to the same extent as if the company had entered into the relationship or transaction.
Propose a change(1) This section applies if— (a) a non-trading debit is given for an accounting period of a company for the purposes of this Part, and (b) within the period of 2 years beginning with the end of the period the company makes an election for the purposes of this section in respect of the debit. (2) The debit must not be brought into account for the purposes of this Part as a non-trading debit for that period. (3) Instead, if conditions A and B are met in respect of a trade, the debit— (a) is treated for the purposes of this Part as if it were a debit for the accounting period in which the company begins to carry on the trade, and (b) is to be brought into account in accordance with section 297(3) (trading debits). (4) Condition A is that the company begins to carry on the trade within the period of 7 years after the end of the accounting period for which a non-trading debit is given for the purposes of this Part. (5) Condition B is that that debit is such that, if it were given for the accounting period in which the company begins to carry on the trade, it would be brought into account by reference to that trade in accordance with section 297(3).
Propose a change(1) This section applies if— (a) a non-UK resident company has debits in respect of a loan relationship to which it is a party for the purposes of its UK property business, (b) the debits are referable to times (“the pre-rental times”) before (but not more than 7 years before) the date on which it starts to carry on the business, and (c) the debits are not otherwise brought into account for tax purposes. (2) If, on the assumption that the company had been carrying on the business at the pre-rental times, the debits— (a) would have been recognised in determining its profit or loss for a period consisting of or including those times, and (b) would have been brought into account for the purposes of this Part, the debits are (so far as they exceed relevant credits) treated for the purposes of this Part as if they were debits for the accounting period in which it started to carry on the business. (3) For this purpose “relevant credits” means credits of the company in respect of the loan relationship which, on the assumption that the company had been carrying on the business at the pre-rental times— (a) would have been recognised in determining its profit or loss for a period consisting of or including those times, (b) would have been brought into account for the purposes of this Part, and (c) would not otherwise have been brought into account for tax purposes. (4) This section is subject to section 327 (disallowance of imported losses etc). (5) This section also applies in relation to a non-UK resident company which is a party to a loan relationship for the purpose of enabling it to generate other UK property income (within the meaning given by section 5(6)).
Propose a change(1) This section applies if— (a) amounts in respect of a qualifying relationship are recognised in a company's accounts for an accounting period (“the current period”) as an item of profit or loss even though during all or part of the period the company is not a party to the qualifying relationship, (b) any of conditions A to D is met, and (c) in the absence of this section, the credits and debits brought into account by the company for the purposes of this Part or Part 7 for the current period would not include credits or debits representing the whole of those amounts. (2) In this section “qualifying relationship” means— (a) a loan relationship, or (b) a relationship that would be a loan relationship if references in section 302(1) to a company were references to any person. References in this section to a company being a party to a qualifying relationship are to be read accordingly. (3) Condition A is that— (a) the company was a party to the qualifying relationship, (b) amounts in respect of the qualifying relationship were recognised in the company's accounts as an item of profit or loss when it was a party to the relationship, and (c) any amounts in respect of the relationship continue to be recognised in those accounts as an item of profit or loss. (4) Condition B is that the amounts recognised as mentioned in subsection (1)(a) are recognised as a result of a transaction which has the effect of transferring to the company all or part of the risk or reward relating to the qualifying relationship without a corresponding transfer of rights or obligations under the relationship. (5) Condition C is that the amounts recognised as mentioned in subsection (1)(a) are recognised as a result of a related transaction in relation to a qualifying relationship to which the company was, but has ceased to be, a party. (6) Condition D is that— (a) the amounts recognised as mentioned in subsection (1)(a) are recognised because the company may enter into a qualifying relationship or related transaction but has not yet done so, and (b) the amounts are not expenses to which section 329 applies. (7) The company must bring credits and debits into account for the purposes of this Part for the accounting period as if the company were a party to the qualifying relationship for the whole of the accounting period. (8) The amounts that must be brought into account are those amounts in respect of the qualifying relationship that are recognised in the company's accounts for the accounting period as an item of profit or loss (but subject to the provisions of this Part). (9) This section is subject to sections 330B and 330C. (10) In this section— “item of profit or loss” has the meaning it has for accounting purposes; “recognised” means recognised in accordance with generally accepted accounting practice; “related transaction”, in relation to a qualifying relationship, is to be read as if the references in section 304(1) and (2) to a loan relationship were to a qualifying relationship.
Propose a changeA company is not to bring into account as a debit for the purposes of this Part as a result of section 330A an amount which— (a) is brought into account as a debit for those purposes by another company, (b) is brought into account so as to reduce the assumed taxable total profits of another company for the purposes of Part 9A of TIOPA 2010 (controlled foreign companies), or (c) is allowable as a deduction by a person for the purposes of income tax.
Propose a change(1) This section applies if at any time a company (“the relevant company”) is required by section 330A to bring into account as a credit for the purposes of this Part an amount— (a) which is brought into account as a credit for those purposes by another company, (b) which is brought into account in determining the assumed taxable total profits of another company for the purposes of Part 9A of TIOPA 2010 (controlled foreign companies), or (c) on which a person is charged to income tax. (2) In order to avoid a double charge to tax in respect of the amount, the relevant company may make a claim for one or more consequential adjustments to be made in respect of the amount to be brought into account as a credit. (3) On a claim under this section an officer of Revenue and Customs must make such of the consequential adjustments claimed (if any) as are just and reasonable. (4) Consequential adjustments may be made— (a) in respect of any period, (b) by way of an assessment, the modification of an assessment, the amendment of a claim, or otherwise, and (c) despite any time limit imposed by or under any enactment.
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Propose a change(1) If a company ceases to be UK resident, this Part applies as if— (a) immediately before so ceasing the company had assigned the assets and liabilities which represent its loan relationships for consideration of an amount equal to their fair value at that time, and (b) it had immediately reacquired them for consideration of the same amount. (2) Subsection (1) does not apply in relation to an asset or liability so far as immediately after the company ceases to be UK resident the asset is held or the liability is owed— (a) for the purposes of a permanent establishment of the company in the United Kingdom, (b) for the purposes of the company's trade of dealing in or developing UK land, (c) for the purposes of the company's UK property business, or (d) for the purposes of enabling the company to generate other UK property income (within the meaning given by section 5(6)). (3) Subsection (1) does not apply if— (a) the conditions in section 344(1)(a) to (c) are met in relation to the company (transferee leaving group after replacing transferor as party to loan relationship), and (b) it ceases to be UK resident at the same time as it ceases to be a member of the relevant group. (4) In subsection (3) “the relevant group” has the meaning given in section 344(4).
Propose a change(1) This section applies if an asset or liability representing a loan relationship of a company which is not UK resident ceases to be held or owed for section 333(2) purposes in circumstances not involving a related transaction (but see subsection (3)). (2) This Part applies as if— (a) immediately before the asset or liability so ceases the company had assigned it, so far as so ceasing, for consideration of an amount equal to its fair value at that time, and (b) the company had immediately reacquired it for consideration of the same amount. (3) This section does not apply if— (a) the conditions in section 344(1)(a) to (c) are met in relation to the company (transferee leaving group after replacing transferor as party to loan relationship), and (b) the asset or liability mentioned in subsection (1) ceases to be held or owed for section 333(2) purposes at the same time as the company ceases to be a member of the relevant group. (4) In subsection (3) “the relevant group” has the meaning given in section 344(4). (5) An asset or liability ceases to be held or owed for section 333(2) purposes if and in so far as— (a) it ceases to be held or owed for any purposes mentioned in section 333(2), and (b) on doing so, it does not begin or continue to be held or owed for any of the other purposes so mentioned.
Propose a change(1) This Chapter applies in the cases mentioned in— (a) section 336 (transfers of loans on group transactions), (b) section 337 (transfers of loans on insurance business transfers), and (c) section 339 (issues of new securities on certain cross-border reorganisations). (2) The following sections make provision about how the credits and debits to be brought into account under this Part in those cases are determined— (a) sections 340 and 341 (which apply in the cases mentioned in sections 336 and 337), and (b) sections 342 and 343 (which apply in the case mentioned in section 339). (3) Sections 344 to 346 provide for the treatment of a loan relationship in respect of which section 336 has applied where the company replacing another as a party to a loan relationship later leaves the group of companies of which they were members. (4) Section 347 (disapplication of Chapter where transferor party to avoidance involving subsequent transfer by transferee) disapplies this Chapter in some circumstances in the cases mentioned in 336 and 337. (5) For the meaning of references in this Chapter to a company replacing another as a party to a loan relationship, see section 338. (6) In this Chapter references to a company being a member of a group of companies are to be read in accordance with section 170 of TCGA 1992 (interpretation of sections 171 to 181 of that Act: groups).
Propose a change(1) The case referred to in section 335(1)(a) is where— (a) there is a transaction within subsection (2) or a series of transactions within subsection (3), and (b) as a result one of the companies involved (“the transferee”) directly or indirectly replaces the other (“the transferor”) as a party to a loan relationship. (2) A transaction is within this subsection if it is a related transaction between two companies which are— (a) members of the same group, and (b) within the charge to corporation tax in respect of that transaction. (3) A series of transactions is within this subsection if it is a series having the same effect as a related transaction between two companies each of which— (a) has been a member of the same group at any time in the course of that series, and (b) would be within the charge to corporation tax in respect of such a related transaction. (4) This Chapter does not apply as a result of this section in relation to— (a) a transfer of an asset, or (b) a transfer of rights under, or an interest in, an asset, as a result of a transaction within subsection (2) or a series of transactions within subsection (3) if immediately before or after the transfer the asset is held for the purposes of a company's long-term business. (4A) For the purposes of subsection (4)— (a) in the case of an overseas life insurance company, ignore transfers in relation to assets which are not UK assets (within the meaning of section 117 of FA 2012), and (b) section 122 of that Act applies as it applies for the purposes of Chapter 8 of Part 2 of that Act. (5) In this Chapter, in relation to a case within subsection (1), “the transferee” and “the transferor” have the same meaning as in that subsection.
Propose a change(1) The case referred to in section 335(1)(b) is where— (a) a transfer between two companies occurs to which this section applies, and (b) as a result one of the companies (“the transferee”) directly or indirectly replaces the other (“the transferor”) as a party to a loan relationship. (2) This section applies to the transfers specified in subsection (3), so far as they are not excluded by subsection (4). (3) They are— (a) a transfer between two companies of business consisting of the effecting or carrying out of contracts of long-term insurance which has effect under an insurance business transfer scheme, and (b) any transfer between two companies which is a qualifying overseas transfer. (3A) In subsection (3)(b) “qualifying overseas transfer” means so much of a transfer of the whole or any part of the business of an overseas life insurance company carried on through a permanent establishment in the United Kingdom as takes place in accordance with an authorisation granted outside the United Kingdom for the purposes of Article 39 of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II). (4) Subsection (3) does not apply to a transfer of an asset, or of rights under or an interest in an asset, if the asset— (a) was within one of the applicable categories immediately before the transfer, and (b) is not within that category immediately after it. (4A) For the purposes of subsection (4)(a) “the applicable categories” means— (a) in the case of a UK life insurance company, the long-term business categories or a category of assets which are not held for the purposes of its long-term business, and (b) in the case of an overseas life insurance company, the UK long-term business categories, a category of UK assets which are not held for the purposes of its long-term business or a category of assets which are held by it but which are not UK assets. (4B) For the purposes of subsection (4A)— (a) “the long-term business categories” has the same meaning as in section 116 of FA 2012, (b) “the UK long-term business categories” and “UK assets” have the same meanings as in section 117 of that Act, and (c) section 122 of that Act applies as it applies for the purposes of Chapter 8 of Part 2 of that Act. (5) Subsection (6) applies for the purposes of subsection (4) if one of the companies mentioned in subsection (3) is an overseas life insurance company. (6) An asset is taken as being in the same category both immediately before and immediately after a transfer if the asset— (a) was in one category immediately before the transfer, and (b) is within the corresponding category immediately after it. (7) In this Chapter, in relation to a case within subsection (1), “the transferee” and “the transferor” have the same meaning as in that subsection.
Propose a change(1) References in this Chapter to one company (“A”) replacing another company (“B”) as a party to a loan relationship include references to A becoming a party to a loan relationship which— (a) confers rights within subsection (2), (b) imposes obligations within subsection (2), or (c) both confers such rights and imposes such obligations. (2) Rights or obligations are within this subsection if they are equivalent to those of B under a loan relationship to which B has previously ceased to be a party. (3) For the purposes of subsection (2), A's rights under a creditor relationship are equivalent to rights under another creditor relationship if each set of rights gives the holder of an asset representing the relationship in question— (a) the same rights against the same persons as to capital, interest and dividends, and (b) the same remedies to enforce those rights. (4) For the purposes of subsection (3), any difference in— (a) the total nominal amounts of the assets representing each relationship, (b) the form in which they are held, or (c) the way in which they can be transferred, is ignored. (5) For the purposes of subsection (2), A's obligations under a debtor relationship are equivalent to obligations under another debtor relationship if each set of obligations subjects the holder of the liability representing the relationship in question to— (a) the same obligations to the same persons as to capital, interest and dividends, and (b) the same remedies to enforce those obligations. (6) For the purposes of subsection (5), any difference in— (a) the total nominal amounts of the assets representing the creditor relationship corresponding to each relationship, (b) the form in which those assets are held, or (c) the way in which they can be transferred, is ignored.
Propose a change(1) The case referred to in section 335(1)(c) is where each of conditions A to D is met. (2) Condition A is that sections 127 to 130 of TCGA 1992 (reorganisations: equation of original shares and new holding)— (a) apply in relation to an exchange as a result of section 135(3) of that Act (which provides for sections 127 to 130 to apply to an exchange of securities for those in another company as if it were a reorganisation), or (b) would so apply but for section 116(5) of that Act (which disapplies sections 127 to 130 where the original shares or the new holding consist of or include a qualifying corporate bond). (3) Condition B is that the original shares consist of or include an asset representing a loan relationship. (4) Condition C is that company A is resident in one member State and company B is resident in another member State. (5) For the purposes of this section a company is resident in a member State if— (a) it is within a charge to tax under the law of the State as being resident for that purpose, and (b) it is not regarded, for the purpose of any double taxation relief arrangements to which the State is a party, as resident in a territory not within a member State. (6) Condition D is that neither Chapter 13 (European cross-border transfers of business) nor Chapter 14 (European cross-border mergers) applies in relation to the exchange. (7) In this section— (a) “company A” and “company B” have the same meaning as in section 135 of TCGA 1992, (b) “original shares” has the same meaning as it has for the purposes of sections 126 to 131 of that Act, as applied by section 135 of that Act, and (c) “receiving company” means the company to which the issue of shares in or debentures of company B mentioned in section 135(1) of that Act is made. (8) If company B is a company to which section 135(5) of TCGA 1992 applies (companies with no share capital), the reference in subsection (7)(c) to the shares in or debentures of company B includes a reference to any interests in the company possessed by its members.
Propose a change(1) This section applies in the cases mentioned in— (a) section 336 (transfers of loans on group transactions), and (b) section 337 (transfers of loans on insurance business transfers). (2) The credits and debits to be brought into account for the purposes of this Part in respect of the loan relationship referred to in section 336(1)(b) or section 337(1)(b) are determined in accordance with subsections (3) to (5). (3) For the accounting period in which the transaction or, as the case may be, the first of the series of transactions takes place, the transferor is treated as having entered into that transaction for consideration of an amount equal to the notional carrying value of the asset or liability representing the relationship (see subsection (6)). (4) For any accounting period in which the transferee is a party to the relationship, it is treated as if it had acquired the asset or liability representing the relationship for consideration of an amount equal to its notional carrying value. (5) If a discount arises in respect of the transaction or series of transactions, the consideration is increased for the purposes of subsection (3) (but not subsection (4)) by the amount of the discount. (6) For the purposes of this section— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) section 480(5) (when discount arises) applies as it applies for the purposes of section 480, and (c) “notional carrying value”, in relation to an asset or liability, means the amount which would have been its tax-adjusted carrying value based on the accounts of the transferor if a period of account had ended immediately before the date when the transferor ceased to be a party to the loan relationship. (7) Part 4 of TIOPA 2010 (provision not at arm's length) does not apply in relation to the amounts in respect of which credits or debits are to be brought into account under this section. (8) This section is subject to sections 332 and 341.
Propose a change(1) This section applies instead of section 340 if, in a case where that section would otherwise apply, the transferor is regarded for the purposes of this section as using fair value accounting in respect of the loan relationship (see subsection (5)). (2) The amount which is to be brought into account by the transferor in respect of the transaction or the series of transactions referred to in section 340(3) (“the transferor's amount”) is— (a) if an asset is to be brought into account, its fair value as at the date when the transferee becomes party to the loan relationship, or the fair value of the rights under or interest in it as at that date, and (b) if a liability is to be brought into account, its fair value as at that date. (3) For any accounting period in which the transferee is a party to the loan relationship, for the purpose of determining the credits and debits to be brought into account in respect of the relationship for the purposes of this Part, the transferee is treated as if it had acquired the asset or liability representing the relationship for consideration of an amount equal to the transferor's amount. (4) If a discount arises in respect of the transaction or series of transactions, the transferor's amount is increased for the purposes of subsection (2) (but not subsection (3)) by the amount of the discount. (5) The transferor is regarded for the purposes of this section as using fair value accounting in respect of the loan relationship only if the credits and debits to be brought into account for the purposes of this Part as respects the relationship are determined on that basis. (6) It does not matter for the purposes of subsection (5) if the transferor does not otherwise use fair value accounting in respect of the loan relationship. (7) For the purposes of this section, section 480(5) (when discount arises) applies as it applies for the purposes of section 480. (8) This section is subject to section 332.
Propose a change(1) This section applies in the case mentioned in section 339. (2) For the purposes of this Part such debits and credits are to be brought into account as would be brought into account if the exchange were a disposal of the asset representing the loan relationship referred to in section 339(3) for consideration of an amount equal to its notional carrying value. (3) For the purposes of this section, the notional carrying value of that asset is the amount that would have been its tax-adjusted carrying value based on the accounts of the receiving company if a period of account had ended immediately before the date when the exchange occurred. (4) In this section— ... “receiving company” has the meaning given in section 339(7). (5) This section is subject to section 343.
Propose a change(1) This section applies instead of section 342 if, in a case where that section would otherwise apply, the receiving company is regarded for the purposes of this section as using fair value accounting in respect of the loan relationship constituting or included in the original shares. (2) The amount which is to be brought into account by the receiving company in respect of the exchange (“the disposal amount”) is the fair value of the asset representing the loan relationship as at the date when the exchange occurred, or of the rights under or interest in that relationship as at that date. (3) For any accounting period in which company B is a party to the loan relationship, for the purpose of determining the credits and debits to be brought into account in respect of the relationship for the purposes of this Part, company B is treated as if it had acquired the asset representing the relationship for consideration of an amount equal to the disposal amount. (4) Subsections (5) and (6) of section 341 apply for the purposes of this section as they apply for the purpose of that section, taking references in that section to the transferor as references to the receiving company. (5) In this section “company B”, “original shares” and “receiving company” have the meaning given in section 339(7).
Propose a change(1) Sections 345 and 346 apply if— (a) this Chapter applies in the case mentioned in section 336 (transfers of loans on group transactions), (b) section 341 (transferor using fair value accounting) does not apply, and (c) before the end of the relevant 6 year period and while still a party to the relevant loan relationship, the transferee ceases to be a member of the relevant group. (2) But the transferee is not treated for the purposes of this section and sections 345 and 346 as having left the relevant group if— (a) an asset or liability which represents a loan relationship is transferred in the course of a transfer or merger in relation to which Chapter 13 (European cross-border transfers of business) or Chapter 14 (European cross-border mergers) applies, and (b) the transferee ceases to be a member of the relevant group in consequence of the transfer or merger. (3) In a case where subsection (2) applies, if the transferee becomes a member of another group in consequence of the transfer or merger, it is treated for the purposes of this section and sections 345 and 346 as if the relevant group and the other group were the same. (4) In this section and sections 345 and 346— “the relevant 6 year period” means the period of 6 years following— in a case where section 340 applies because of a transaction within section 336(2) (“case A”), that transaction, or in a case where section 340 applies because of a series of transactions within section 336(3) (“case B”), the last transaction of that series, “the relevant group” means— in case A, the group mentioned in section 336(2), and in case B, the group mentioned in section 336(3), and “the relevant loan relationship” means the loan relationship mentioned in section 336(1)(b).
Propose a change(1) This section applies if— (a) the transferee ceases to be a member of the relevant group, and (b) it does not so cease just because of a distribution which is exempt as a result of section 1075 of CTA 2010 (exempt distributions). (2) ... This Part applies as if— (a) the transferee had assigned the asset or liability representing the relevant loan relationship immediately before ceasing to be a member of the relevant group, (b) the assignment had been for consideration of an amount equal to the fair value of the asset or liability at that time, and (c) the transferee had immediately reacquired the asset or liability for consideration of the same amount. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Propose a change(1) This section applies if— (a) the transferee ceases to be a member of the relevant group just because of a distribution which is exempt as a result of section 1075 of CTA 2010 (exempt distributions), and (b) there is a chargeable payment within the meaning of section 1088(1) of CTA 2010 (chargeable payments connected with exempt distributions) within 5 years after the making of that distribution. (2) ... This Part applies as if— (a) the transferee had assigned the asset or liability representing the relevant loan relationship immediately before the chargeable payment was made, (b) the assignment had been for consideration of an amount equal to the fair value of the asset or liability immediately before the transferee ceased to be a member of the relevant group, and (c) the transferee had immediately reacquired the asset or liability for consideration of the same amount. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Propose a change(1) This Chapter contains some general rules relating to connected companies relationships. (2) For the purposes of this Part a debtor relationship of a company is a connected companies relationship if there is a connection between— (a) the company, and (b) another company standing in the position of a creditor as respects the debt in question. (3) For the purposes of subsection (2) a company is treated as standing in the position of a creditor if it indirectly stands in that position by reference to a series of loan relationships or relevant money debts. (4) For the purposes of this Part a creditor relationship of a company is a connected companies relationship if there is a connection between— (a) the company, and (b) another company standing in the position of a debtor as respects the debt in question. (5) For the purposes of subsection (4) a company is treated as standing in the position of a debtor if it indirectly stands in that position by reference to a series of loan relationships or relevant money debts. (6) For the purposes of this Part, if a loan relationship is a connected companies relationship at any time in an accounting period, it is treated as being such a relationship for the period. (7) In this section “relevant money debt” means a money debt which would be a loan relationship if a company directly stood in the position of creditor or debtor. (8) Section 466 (companies connected for an accounting period) applies for the purposes of this section.
Propose a change(1) This section applies if a loan relationship is a connected companies relationship for an accounting period. (2) The credits and debits which are to be brought into account for the purposes of this Part in respect of the relationship for the period are determined on an amortised cost basis of accounting. (2A) Where— (a) a company has a hedging relationship between a relevant contract (“the hedging instrument”) and the asset or liability representing the loan relationship, and (b) the loan relationship is dealt with in the company's accounts on the basis of fair value accounting, it is to be assumed in applying an amortised cost basis of accounting for the purpose of subsection (2) that the hedging instrument has where possible been designated for accounting purposes as a fair value hedge of the loan relationship. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Propose a change(1) This section applies in an accounting period if— (a) section 349 applies in respect of a creditor relationship of a company for the period, and (b) a related transaction takes place in relation to the relationship in the period. (2) The credits brought into account in respect of the relationship for the period for the purposes of this Part must not be less than they would have been if— (a) the transaction had not taken place, and (b) no amounts had accrued after the transaction took place. (3) The debits brought into account in respect of the loan relationship for the period for the purposes of this Part must not be more than they would have been in that case. (3A) Subsections (2) and (3) do not affect the credits or debits to be brought into account for the purposes of this Part in respect of changes in the fair value of the asset that are attributable to changes in the corresponding market rate. (3B) Subsection (3A) is subject to section 354 (exclusion of debits for impaired or released connected companies debts). (3C) In relation to a debt, “the corresponding market rate” at any time is the lowest rate at which a company of good financial standing might at that time expect to be able to borrow money at arm's length in the currency applicable to the debt, for repayment at the same time as the debt and otherwise on similar terms. (4) Nothing in this section affects the credits or debits to be brought into account for the purposes of this Part in respect of exchange gains or losses arising from a debt.
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