SCHEDULES

SCHEDULE 7 Transfer schemes: tax

Securities

I117

1

This paragraph applies if—

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 F1Part 5 of the Corporation Tax Act 2009 (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 F2Part 5 of the Corporation Tax Act 2009 have the same meanings in this paragraph as in F2that Part.