Section 349 | Application of amortised cost basis to connected companies relationships

(1)This section applies if a loan relationship is a connected companies relationship for an accounting period.

(2)The credits and debits which are to be brought into account for the purposes of this Part in respect of the relationship for the period are determined on an amortised cost basis of accounting.

(2A)Where—^F1

(a)a company has a hedging relationship between a relevant contract (“the hedging instrument”) and the asset or liability representing the loan relationship, and^F1

(b)the loan relationship is dealt with in the company's accounts on the basis of fair value accounting,^F1

it is to be assumed in applying an amortised cost basis of accounting for the purpose of subsection (2) that the hedging instrument has where possible been designated for accounting purposes as a fair value hedge of the loan relationship.

(3)Repealed^F2

(4)Repealed^F2