Transport Act 2000

Loan relationships U.K.

7 (1) Sub-paragraph (2) applies if as a result of a relevant transfer the transferee replaces, or (if the transferor had been a company) would have replaced, the transferor as a party to a loan relationship. U.K.

(2) [F1 Part 5 of the Corporation Tax Act 2009] is to have effect in relation to the time when the relevant transfer takes effect and any later time as if—

(a) the transferee had been a party to the loan relationship at the time the transferor became, or (if the transferor had been a company) would have become, a party to the loan relationship and at all times since that time, and

(b) the loan relationship to which the transferee is a party after the time the transfer takes effect is the same loan relationship as that to which, by virtue of paragraph (a), it is treated as having been a party before that time.

(3) For the purposes of sub-paragraph (2) the transferor (and accordingly the transferee) is to be taken to have accounted for the loan relationship in accordance with [F2 a basis of accounting] corresponding to that in accordance with which the transferee accounts for the loan relationship in the accounting period in which the transfer takes effect.

(4) Expressions used in this paragraph and in [F3 Part 5 of the Corporation Tax Act 2009] have the same meanings in this paragraph as in [F3 that Part].

Textual Amendments

F1 Words in Sch. 26 para. 7(2) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 473(2)(a) (with Sch. 2 Pts. 1, 2)

F2 Words in Sch. 26 para. 7(3) substituted (with effect in accordance with s. 52(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 10 para. 46

F3 Words in Sch. 26 para. 7(4) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 473(2)(b) (with Sch. 2 Pts. 1, 2)