CFM35630 - Loan relationships: consortia companies and impairment: how the restriction works: example

When the Chapter 7 restriction applies: example

FD Ltd is a consortium company. It is owned

• 40% by RT plc, the holding company of a large group
• 40% by WD Ltd, a subsidiary of KX plc
• 20% by MC Ltd, a singleton company.

Any amount that is written off a loan made

by

• RT plc (consortium member) or any of its subsidiaries (group members), or
• WD Ltd (consortium member), its holding company or any of its fellow group members, or
• MC Ltd (consortium member)

to

• FD Ltd, or
• if FD Ltd is a holding company, any subsidiary of FD Ltd

will fall within CTA09/PT5/CH7.