(1)If a company ceases to be UK resident, this Part applies as if—
(a)immediately before so ceasing the company had assigned the assets and liabilities which represent its loan relationships for consideration of an amount equal to their fair value at that time, and
(b)it had immediately reacquired them for consideration of the same amount.
(2)Subsection (1) does not apply in relation to an asset or liability so far as immediately after the company ceases to be UK resident the asset is held or the liability is owed for the purposes of a permanent establishment of the company in the United Kingdom.
(3)Subsection (1) does not apply if—
(a)the conditions in section 344(1)(a) to (c) are met in relation to the company (transferee leaving group after replacing transferor as party to loan relationship), and
(b)it ceases to be UK resident at the same time as it ceases to be a member of the relevant group.
(4)In subsection (3) “the relevant group” has the meaning given in section 344(4).