Paragraph 4

Where the liability in respect of any debt owed to an existing bank, the existing holding company or the Central Board, is transferred by section 3 above, the transferee shall be treated as the original creditor for the purposes of section F1251 of the F21992 Act (debts).

On a 75 per cent. subsidiary (“the existing subsidiary”) of an existing bank becoming a 75 per cent. subsidiary of the bank’s successor, section F3178 or 179 of the 1992 Act (company ceasing to be a member of a group) shall not have effect as respects any assets transferred (at any time) by the bank to the subsidiary; but on the subsidiary ceasing to be a member of the group of companies (“the group”) of which the successor and the new holding company are both members, section 178 or 179 of the 1992 Act shall apply as if the assets acquired by the subsidiary from the bank had been acquired by it from the bank’s successor.

No provision made by this Act shall be treated, for the purposes of section 30 of the 1992 Act (value-shifting), as a scheme or arrangement.

For the purposes of the 1992 Act, any allowable losses accruing in any accounting period to the Central Board or to an existing bank shall, so far as they have not been allowed as a deduction from chargeable gains, be treated as allowable losses which accrued in that accounting period to the new holding company or, as the case may be, successor.