Yn ddilys o 01/04/2009
334Non-UK resident company ceasing to hold loan relationship for UK permanent establishmentU.K.
(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 the purposes of a permanent establishment of the company in the United Kingdom 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 the purposes of the permanent establishment 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).