Section 334 — Corporation Tax Act 2009: Non-UK resident company ceasing to hold loan relationship for section 333(2) purposes

Non-UK resident company ceasing to hold loan relationship for section 333(2) purposes 334 1 This section applies if an asset or liability representing a loan relationship of a company which is not UK resident ceases to be held or owed for section 333(2) purposes in circumstances not involving a related transaction (but see subsection (3)).

2 This Part applies as if—

a immediately before the asset or liability so ceases the company had assigned it, so far as so ceasing, for consideration of an amount equal to its fair value at that time, and b the company had immediately reacquired it for consideration of the same amount.

3 This section does not apply if—

a the conditions in section 344(1)(a) to (c) are met in relation to the company (transferee leaving group after replacing transferor as party to loan relationship),

and b the asset or liability mentioned in subsection (1) ceases to be held or owed for section 333(2) purposes at the same time as the company ceases to be a member of the relevant group.

4 In subsection (3) “ the relevant group ” has the meaning given in section 344(4).

5 An asset or liability ceases to be held or owed for section 333(2) purposes if and in so far as—

a it ceases to be held or owed for any purposes mentioned in section 333(2),

and b on doing so, it does not begin or continue to be held or owed for any of the other purposes so mentioned.