SCHEDULES

SCHEDULE 9 Loan relationships: special computational provisions

F1Deemed assignment of assets and liabilities on company ceasing to be resident in UKetc

Annotations:
Amendments (Textual)
F1

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)

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

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .