Paragraph 10

United Kingdom

F1(1)

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(2)

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(3)

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(4)

The following provisions of this paragraph apply for the purposes of TCGA 1992 if—

(a)

a company is a party to a relationship on 22nd March 2006,

(b)

the relationship becomes a loan relationship on that date for the purposes of Chapter 2 of Part 4 of FA 1996 as a result of the amendments made by this paragraph,

(c)

the relationship is a creditor relationship of the company, and

(d)

immediately before that date the asset representing the relationship was a chargeable asset in relation to the company.

(5)

The company is treated as if—

(a)

it had made a disposal of the asset representing the relationship immediately before 22nd March 2006, and

(b)

the disposal had been for a consideration equal to the fair value of the asset at that time (within the meaning given by section 103(1) of FA 1996).

(6)

Any chargeable gain or loss accruing to the company on the disposal is treated as accruing to the company when it ceases to be a party to the relationship.

(7)

For the purposes of this paragraph an asset is a chargeable asset in relation to the company at any time if any gain accruing to it on the disposal of the asset at that time would be a chargeable gain for the purposes of TCGA 1992.

Annotations

Textual amendments

F1: Sch. 6 para. 10(1)-(3) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)