116(1) Subject to subsections (4) to (6), section 117 applies if condition A or B is met.
116(2) Condition A is that–
(a)a company resident in the United Kingdom transfers to a company resident in a member State the whole or part of a business which immediately before the transfer the transferor carried on in a member State through a permanent establishment, and
(b)the transfer includes–
(i)the transfer of an asset or liability representing a loan relationship,
(ii)the transfer of rights and liabilities under a derivative contract, or