Part 5Loan Relationships
Chapter 3The credits and debits to be brought into account: general
Company ceasing to be party to loan relationship
332Repo, stock lending and other transactions
1
This section applies if—
a
a company ceases to be a party to a loan relationship in any accounting period, for example as a result of the disposal of the rights or liabilities under the relationship under a repo or stock lending arrangement, but
b
nonetheless, in accordance with generally accepted accounting practice, amounts in respect of the relationship are recognised in determining the profit or loss of the company for that or any subsequent accounting period.
2
Despite ceasing to be a party to the relationship, the company must bring amounts in respect of the relationship into account for those periods for the purposes of this Part.
3
The amounts that must be so brought into account are those that are so recognised in respect of the relationship (but subject to the provisions of this Part, including, in particular, section 307(3)).
4
This section does not apply in relation to any amount in respect of a loan relationship which is brought into account for this Part as a result of—
a
section 331 (company ceasing to be party to a loan relationship), or
b
section 550 (ignoring effect on borrower of sale of securities: debtor repos, debtor quasi-repos and other arrangements).
5
Section 331(3) and (4) applies in relation to any time after the company ceases to be a party to a loan relationship in a case where this section applies as it applies where section 331 applies.