SCHEDULES

SCHEDULE 7 U.K.Avoidance involving financial arrangements

Deemed disposal of assets and liabilities on company ceasing to be resident in UK etc U.K.

15 (1) In Schedule 9 to FA 1996 (loan relationships) paragraph 10A is amended as follows. U.K.

(2) After sub-paragraph (1) (cases where the paragraph applies) insert—

“(1A) But this paragraph does not apply if—

(a) paragraph 12A below (transferee company leaving group) applies in relation to the company, and

(b) the cessation in sub-paragraph (1)(a) or (b) above occurs at the same time as the cessation in sub-paragraph (1)(b) of that paragraph.”.

(3) In sub-paragraph (2) (Schedule to have effect as if there had been an assignment and reacquisition) for “Schedule” substitute “ Chapter ”.

(4) The amendments made by this paragraph have effect on and after 16th March 2005.