SCHEDULES
SCHEDULE 9 Loan relationships: special computational provisions
F1Deemed assignment of assets and liabilities on company ceasing to be resident in UKetc
10A
1
This paragraph applies if at any time (“the relevant time”)—
a
a company ceases to be resident in the United Kingdom, or
b
in the case of a company that is not resident in the United Kingdom, an asset or liability representing a loan relationship of the company ceases to be held for the purposes of a permanent establishment of the company in the United Kingdom in any circumstances not involving a related transaction.
2
In a case falling within sub-paragraph (1)(a) above, this Chapter shall have effect as if the company had—
a
immediately before the relevant time, assigned the assets and liabilities that represent its loan relationships for a consideration of an amount equal to their fair value at that time, and
b
immediately reacquired them for a consideration of the same amount.
3
Sub-paragraph (2) above does not apply in relation to an asset or a liability to the extent that, immediately after the relevant time, it is held or owed for the purposes of a permanent establishment of the company in the United Kingdom.
4
In a case falling within sub-paragraph (1)(b) above, this Chapter shall have effect as if the company had—
a
immediately before the relevant time, assigned the asset or liability, so far as ceasing to be held or owed for the purposes of the permanent establishment, for a consideration of an amount equal to its fair value at that time, and
b
immediately reacquired it for a consideration of the same amount.
F25
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Sch. 9 para. 10A and cross-heading inserted (with effect in accordance with Sch. 8 para. 5(2) of the amending Act) by Finance Act 2004 (c. 12), Sch. 8 para. 5(1)