Commentary on Sections Overview Overview Section 422: Transfer of loan relationship at notional carrying value
1249.This section provides the rule that where either of the conditions in section 421 applies, credits and debits on loan relationships which are transferred as part of the business transfer are brought into account by both the transferor and transferee as if the loan relationships had been transferred at the carrying value in the accounts of the transferor. It is based on paragraph 12D(1), (2) and (6) of Schedule 9 to FA 1996.
1250.The definition of “notional carrying value” is taken from paragraph 12(2) of Schedule 9 to FA 1996.