Section 336 — Corporation Tax Act 2009: Transfers of loans on group transactions

Transfers of loans on group transactions 336 1 The case referred to in section 335(1)(a) is where—

a there is a transaction within subsection (2) or a series of transactions within subsection (3),

and b as a result one of the companies involved (“ the transferee ”) directly or indirectly replaces the other (“ the transferor ”) as a party to a loan relationship.

2 A transaction is within this subsection if it is a related transaction between two companies which are—

a members of the same group, and b within the charge to corporation tax in respect of that transaction.

3 A series of transactions is within this subsection if it is a series having the same effect as a related transaction between two companies each of which—

a has been a member of the same group at any time in the course of that series, and b would be within the charge to corporation tax in respect of such a related transaction.

4 This Chapter does not apply as a result of this section in relation to—

a a transfer of an asset, or b a transfer of rights under, or an interest in, an asset, as a result of a transaction within subsection (2) or a series of transactions within subsection (3) if immediately before or after the transfer the asset is held for the purposes of a company's long-term business . 4A For the purposes of subsection (4)—

a in the case of an overseas life insurance company, ignore transfers in relation to assets which are not UK assets (within the meaning of section 117 of FA 2012),

and b section 122 of that Act applies as it applies for the purposes of Chapter 8 of Part 2 of that Act.

5 In this Chapter, in relation to a case within subsection (1), “ the transferee ” and “ the transferor ” have the same meaning as in that subsection.