Section 342 — Corporation Tax Act 2009: Issues of new securities on reorganisations: disposal at notional carrying value

Issues of new securities on reorganisations: disposal at notional carrying value 342 1 This section applies in the case mentioned in section 339.

2 For the purposes of this Part such debits and credits are to be brought into account as would be brought into account if the exchange were a disposal of the asset representing the loan relationship referred to in section 339(3) for consideration of an amount equal to its notional carrying value.

3 For the purposes of this section, the notional carrying value of that asset is the amount that would have been its tax-adjusted carrying value based on the accounts of the receiving company if a period of account had ended immediately before the date when the exchange occurred.

4 In this section— ... “ receiving company ” has the meaning given in section 339(7).

5 This section is subject to section 343.