3(1)Section 554C (relevant steps: payment of sum, transfer of asset etc.) is amended as follows.
(2)In subsection (1), after paragraph (a) insert—
“(aa)acquires a right to a payment of a sum of money, or to a transfer of assets, where there is a connection (direct or indirect) between the acquisition of the right and—
(i)a payment made, by way of a loan or otherwise, to a relevant person, or
(ii)a transfer of assets to a relevant person,
(ab)releases or writes off the whole or a part of—
(i)a loan made to a relevant person, or
(ii)an acquired right of the kind mentioned in paragraph (aa),”.”
(3)After subsection (3) insert—
“(3A)For the purposes of subsection (1) “loan” includes—
(a)any form of credit, and
(b)a payment that is purported to be made by way of a loan.
(3B)Subsection (3C) applies where a person (“T”) acquires from another person (“L”) (whether or not for consideration)—
(a)a right to payment of the whole or part of a loan where T is the person liable (at the time of the acquisition of the right) to repay the loan, or
(b)a right to payment of a sum of money, or to a transfer of assets, where T is the person liable (at the time of the acquisition of the right) to pay the sum, or transfer the assets.
(3C)L is to be treated for the purposes of subsection (1)(ab) as releasing—
(a)in a case within subsection (3B)(a), the loan or the relevant part of it;
(b)in a case within subsection (3B)(b), the right or the relevant part of it.”