Corporation Tax Act 2009 section 58

Continuity on transfers: transferees becoming party to loan relationship before 9 April 2003

Section 58 provides transitional rules that modify how the continuity of treatment provisions apply when a transferee company became party to a loan relationship before 9 April 2003.

• This paragraph applies where a company (the transferee) became party to a loan relationship before 9 April 2003 as part of a group transaction or insurance business transfer.
• The definition of what it means for one company to replace another as party to a loan relationship (section 338) is applied in a simplified form for these pre-9 April 2003 cases.
• Certain conditions and references in section 338 are removed, including the requirements in paragraphs (b) and (c) of subsection (1), the words "or obligations" in subsection (2), and subsections (5) and (6) entirely.
• This transitional provision is treated as if it were part of Chapter 4 of Part 5, meaning it operates within the same framework as the main continuity rules for group transfers and reorganisations.