Group continuity: transfers on or after 16 March 2005

A transfer between group companies is treated as consideration giving rise to neither a gain nor a loss. Whatever accounting treatment is adopted by the transferee company, no amounts drop out of account when the loan relationship is transferred.

For the purposes of computing loan relationship credits and debits, the transferor company is deemed to have disposed of the loan relationship for its notional carrying value. The transferee company is treated as having acquired the loan relationship for the same notional carrying value.

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