Modifications etc. (not altering text)
C1Pt. 5 applied (with effect in accordance with Sch. 24 paras. 13-16 of the amending Act) by Finance Act 2009 (c. 10), Sch. 24 para. 15(2)(3)
(1)Sections 345 and 346 apply if—
(a)this Chapter applies in the case mentioned in section 336 (transfers of loans on group transactions),
(b)section 341 (transferor using fair value accounting) does not apply, and
(c)before the end of the relevant 6 year period and while still a party to the relevant loan relationship, the transferee ceases to be a member of the relevant group.
(2)But the transferee is not treated for the purposes of this section and sections 345 and 346 as having left the relevant group if—
(a)an asset or liability which represents a loan relationship is transferred in the course of a transfer or merger in relation to which Chapter 13 (European cross-border transfers of business) or Chapter 14 (European cross-border mergers) applies, and
(b)the transferee ceases to be a member of the relevant group in consequence of the transfer or merger.
(3)In a case where subsection (2) applies, if the transferee becomes a member of another group in consequence of the transfer or merger, it is treated for the purposes of this section and sections 345 and 346 as if the relevant group and the other group were the same.
(4)In this section and sections 345 and 346—
“the relevant 6 year period” means the period of 6 years following—
in a case where section 340 applies because of a transaction within section 336(2) (“case A”), that transaction, or
in a case where section 340 applies because of a series of transactions within section 336(3) (“case B”), the last transaction of that series,
“the relevant group” means—
in case A, the group mentioned in section 336(2), and
in case B, the group mentioned in section 336(3), and
“the relevant loan relationship” means the loan relationship mentioned in section 336(1)(b).