(1)The case referred to in section 335(1)(b) is where—
(a)a transfer between two companies occurs to which this section applies, and
(b)as a result one of the companies (“the transferee”) directly or indirectly replaces the other (“the transferor”) as a party to a loan relationship.
(2)This section applies to the transfers specified in subsection (3), so far as they are not excluded by subsection (4).
(3)They are—
(a)a transfer between two companies of business consisting of the effecting or carrying out of contracts of long-term insurance which has effect under an insurance business transfer scheme, and
(b)any transfer between two companies which is a qualifying overseas transfer.
(4)Subsection (3) does not apply to a transfer of an asset, or of rights under or an interest in an asset, if the asset—
(a)was within one of the categories set out in section 440(4) of ICTA immediately before the transfer, and
(b)is not within that category immediately after it.
(5)Subsection (6) applies for the purposes of subsection (4) if one of the companies mentioned in subsection (3) is an overseas life insurance company.
(6)An asset is taken as being in the same category both immediately before and immediately after a transfer if the asset—
(a)was in one category immediately before the transfer, and
(b)is within the corresponding category immediately after it.
(7)In this Chapter, in relation to a case within subsection (1), “the transferee” and “the transferor” have the same meaning as in that subsection.