Corporation Tax Act 2009 Explanatory Notes

Section 356: Exception to section 354: swapping debt for equity

1144.This section provides the first of two exceptions to the basic rule in section 354. It is based on paragraph 6(4) and (5) of Schedule 9 to FA 1996. The exception in this section applies when the liability is released in consideration for shares in the debtor company which give rise to the connection.

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