422Transfer of loan relationship at notional carrying valueU.K.
(1)This section applies if in the course of the transfer of business the transferor transfers an asset or liability representing a loan relationship to a transferee.
(2)For the purpose of determining the credits and debits to be brought into account in respect of the loan relationship for the purposes of this Part, the transferor and the transferee are treated as having entered into the transfer of that asset or liability for consideration of an amount equal to the notional carrying value of the asset or liability.
(3)For the purposes of this section—
F1(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)“notional carrying value”, in relation to an asset or liability, means the amount which would have been [F2its tax-adjusted carrying value based on] the accounts of the transferor if a period of account had ended immediately before the date when the transferor ceased to be a party to the loan relationship.
(4)This section is subject to section 423 (transferor using fair value accounting).
Textual Amendments
F1S. 422(3)(a) omitted (with effect in accordance with Sch. 7 Pt. 6 of the amending Act) by virtue of Finance (No. 2) Act 2015 (c. 33), Sch. 7 para. 41(a)
F2Words in s. 422(3)(b) substituted (with effect in accordance with Sch. 7 Pt. 6 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 7 para. 41(b)