Part 5Loan Relationships

Chapter 4Continuity of treatment on transfers within groups or on reorganisations

Application of this Chapter

335Introduction to Chapter

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).