17(1)This paragraph applies if—U.K.
(a)securities are issued to a company in pursuance of a direction of the Secretary of State under section 49 or 58 above, and
(b)by virtue of any such security the company has a loan relationship for the purposes of the Corporation Tax Acts.
(2)For the purposes of Chapter II of Part IV of the M1Finance Act 1996 (loan relationships) the company is to be taken to have acquired its rights under the security wholly in consideration of a loan made by it to the issuing company of an amount equal to the principal sum payable under the security.
(3)Expressions used in this paragraph and in Chapter II of Part IV of the M2Finance Act 1996 have the same meanings in this paragraph as in that Chapter.
Commencement Information
I1Sch. 7 paras. 1-20 wholly in force at 1.2.2001, see s. 275(1) and S.I. 2001/57, art. 3(1), Sch. 2 Pt. I (subject to the transitional provision and saving in Sch. 2 Pt. II)
Marginal Citations