»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýappse provisions could be sidestepped by company A lending money in the form of a debt on a security to an unconnected third party, such as a bank, and the third party then making an equivalent loan to company B, which is linked with company A. To prevent this result the provisions which eliminate or restrict indexation allowance also apply if all the following conditions in TCGA92/S182 (5) are satisfied.

• A company disposes of a debt on a security owed by any person.
• »Ê¹ÚÌåÓýapp company and that person were not linked companies immediately before the disposal.
• »Ê¹ÚÌåÓýapp debt was incurred by that person as part of arrangements involving another company being put in funds. »Ê¹ÚÌåÓýapp phrase `put in fundsâ€� covers the provision of finance in any form.

If these conditions are met, the provisions apply as they would have done if the debt were owed by the company which was put in funds. »Ê¹ÚÌåÓýapp result is to eliminate or restrict the indexation allowance available to the creditor company on the disposal of the debt owed by the intermediary.