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)
C2Pt. 5 applied (with modifications) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 990(5), 1184(1) (with Sch. 2)
Modifications etc. (not altering text)
C3Pt. 5 Ch. 4 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 5
C4Pt. 5 Ch. 4 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)
(1)This section applies if—
(a)the transferee ceases to be a member of the relevant group, and
(b)it does not so cease just because of a distribution which is exempt [F1as a result of section 1075 of CTA 2010 (exempt distributions)].
(2)If condition A or B is met, this Part applies as if—
(a)the transferee had assigned the asset or liability representing the relevant loan relationship immediately before ceasing to be a member of the relevant group,
(b)the assignment had been for consideration of an amount equal to the fair value of the asset or liability at that time, and
(c)the transferee had immediately reacquired the asset or liability for consideration of the same amount.
(3)Condition A is that if this Part applied as mentioned in subsection (2) because of that subsection applying, a credit would be brought into account for the purposes of this Part by the transferee because of subsection (2)(a) and (b).
(4)Condition B is that—
(a)the relevant loan relationship is a creditor relationship,
(b)the transferee has a hedging relationship between a derivative contract and the creditor relationship, and
(c)because of section 631(2)(a) and (b) (transferee leaving group otherwise than because of exempt distribution) a credit is to be brought into account by the transferee for the purposes of Part 7 (derivative contracts) in respect of the derivative contract.
(5)Section 707 (meaning of “hedging relationship”) applies for the purposes of this section.
Textual Amendments
F1Words in s. 345(1)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 606 (with Sch. 2)
Modifications etc. (not altering text)
C5S. 345 excluded (with effect in accordance with reg. 1(2) of the amending S.I.) by Mutual Societies (Transfers of Business) (Tax) Regulations 2009 (S.I. 2009/2971), regs. 1(1), 25(3)(b) (with reg. 25(6))
C6S. 345 applied (with effect in accordance with reg. 1(2) of the amending S.I.) by Mutual Societies (Transfers of Business) (Tax) Regulations 2009 (S.I. 2009/2971), regs. 1(1), 25(5)(a) (with reg. 25(6))