Part 5Loan Relationships

Chapter 6Connected companies relationships: impairment losses and releases of debts

Exclusion of debits for impaired or released connected companies debts

355Cessation of connection

(1)

This section applies if, in the case of a creditor relationship of a company—

(a)

an impairment loss or release debit is excluded by section 354 from being brought into account for any accounting period, and

(b)

there is a later accounting period for which the creditor relationship in respect of the debt is not a connected companies relationship.

(2)

So far as any amount represents the impairment loss or release debit, no debit may be brought into account in respect of it—

(a)

for the first accounting period within subsection (1)(b), or

(b)

for any subsequent such accounting period.