Part 6Relationships treated as loan relationships etc
F1Chapter 6AShares accounted for as liabilities
C1 521F Shares becoming or ceasing to be shares to which section 521B applies
1
This section applies if at any time section 521B begins or ceases to apply in the case of a share held by the investing company.
2
The investing company is treated for the purposes of Part 5—
a
as having disposed of the share immediately before that time for consideration of an amount equal to the notional carrying value of the share at that time, and
b
as having immediately reacquired it for consideration of the same amount.
3
In subsection (2) “ notional carrying value ”, in relation to the share, means the amount which would have been its carrying value in the accounts of the investing company if a period of account had ended immediately before section 521B began or ceased to apply in the case of the share and the investing company.
4
For the purposes of subsection (3) “ carrying value ” has the same meaning as it has for the purposes of section 316 (see section 317).
Pt. 6 Ch. 6A inserted (retrospective and with effect in accordance with Sch. 24 paras. 12, 13-16 of the commencing Act) by Finance Act 2009 (c. 10), Sch. 24 para. 412