Section 342 | Issues of new securities on reorganisations: disposal at notional carrying value

(1)This section applies in the case mentioned in section 339.

(2)For the purposes of this Part such debits and credits are to be brought into account as would be brought into account if the exchange were a disposal of the asset representing the loan relationship referred to in section 339(3) for consideration of an amount equal to its notional carrying value.

(3)For the purposes of this section, the notional carrying value of that asset is the amount that would have been its tax-adjusted carrying value based on the accounts of the receiving company if a period of account had ended immediately before the date when the exchange occurred.^F1

(4)In this section—^F2

“receiving company” has the meaning given in section 339(7).

(5)This section is subject to section 343.