17(1)Sub-paragraph (2) applies if, as a result of a relevant transfer, the transferee replaces the transferor as a party to a loan relationship.
(2)Chapter II of Part IV of the [1996 c. 8.] Finance Act 1996 is to have effect in relation to the time when the relevant transfer takes effect and any later time as if—
(a)the transferee had been a party to the loan relationship at the time the transferor became a party to the loan relationship and at all times since that time, and
(b)the loan relationship to which the transferee is a party after the time the transfer takes effect is the same loan relationship as that to which, by virtue of paragraph (a), it is treated as having been a party before that time.
(3)Expressions used in this paragraph and in Chapter II of Part IV of the Finance Act 1996 have the same meanings in this paragraph as in that Chapter.