CFM35520 - Loan relationships: connected companies and impairment: debtors: deemed releases of impaired debt: deemed releases: 바카라 사이트˜release of relevant rights바카라 사이트™
CTA09/S358
Debt buybacks: deemed releases include releases of 바카라 사이트˜relevant rights바카라 사이트™
CFM35440 explains that the normal rule in S358 that no credit is brought in by a debtor company in respect of a release by a connected creditor is disapplied where there is a 바카라 사이트˜deemed release바카라 사이트™.
A debtor company will also be subject to a taxable credit in respect of a 바카라 사이트˜release of relevant rights바카라 사이트™ (S358(4)).
A release of relevant rights is the amount that would have been taxed as a 바카라 사이트˜deemed release바카라 사이트™ under CTA09/S361 but for the application of either the old 바카라 사이트˜corporate rescue바카라 사이트™ exception (CFM35540), or the old 바카라 사이트˜debt-for-debt바카라 사이트™ exception (CFM35550). In effect the release of relevant rights is the crystallisation of the deemed release that was deferred by the application of those exceptions.
The amount of the release of relevant rights is the discount at which the debt was acquired by the connected creditor (or by another company to which the debt has been assigned), less any amounts taxed on the creditor (and any other company to which the debt was assigned) in respect of the discount either in previous accounting periods or in the period in which the release takes place.
The new creditor바카라 사이트™s carrying value of the debt is the amount of the consideration it pays for the acquisition. If it does not release the debt, accounts drawn up under the amortised cost basis will normally show the accretion of amounts equal to the discount at which it purchased the debt. If, exceptionally, no accreting amounts are brought in as taxable credits, and the debtor actually repays the new creditor more than it paid for the acquisition of the debt, the creditor will be taxable on the profit, and the debtor will have a corresponding debit.