Fair value accounting

Transfers of loan relationships where the transferor uses fair value accounting are not subject to the usual group continuity treatment. This part of the group continuity rule has been subject to a number of changes. HMRC staff should consult CTIAA (Financial Products Team) where a transaction does not appear to correspond to the treatment described below.

CTA09/S341 applies instead of S340 where the transferor uses fair value accounting. ‘Fair value accounting’ is defined under S313(5). The transferor must bring into account the fair value of the loan relationship, and the transferee company is regarded as acquiring the loan relationship at:

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