C1C3C4C5C6Part 5Loan Relationships
Pt. 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)
Pt. 5 modified (15.11.2011 for specified purposes, 30.3.2012 for E.W.) by Localism Act 2011 (c. 20), ss., 240(5)(o), Sch. 24 para. 5; S.I. 2012/628, art. 3(b)
Pt. 5 modified (1.4.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), s. 29, Sch. 4 para. 2; S.I. 2011/2576, art. 5
C2C3C6Chapter 6Connected companies relationships: impairment losses and releases of debts
Pt. 5 Chs. 6-8 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)
Deemed debt releases on impaired debts becoming held by connected company
361CC6F1The equity-for-debt exception
1
For the purposes of section 361 the “equity-for-debt exception” applies if the following two conditions are met.
2
The first condition is that the acquisition is an arm's length transaction.
3
The second condition is that the consideration given by C for the acquisition consists only of—
a
shares forming part of the ordinary share capital of C,
b
shares forming part of the ordinary share capital of a company connected with C, or
c
an entitlement to shares within paragraph (a) or (b).
Pt. 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)