Section 552 of the Principal Act is amended by inserting the following subsection after subsection (1A):

"(1B)

(a) In this subsection-

'connected person' has the same meaning as in section 10;

'debt' means a debt or debts, in respect of borrowed money, whether incurred by the person making the disposal of an asset or by a connected person;

'group' and 'member of a group' have the same meanings, respectively, as in section 616.

(b) Where-

(i) the amount or value of the consideration referred to in subsection (1)(a), or

(ii) the amount of any expenditure referred to in subsection (1)(b), was defrayed either directly or indirectly out of borrowed money, the debt in respect of which is released in whole or in part (whether before, on or after the disposal of the asset), that amount shall be reduced by the lesser of the amount of the debt which is released or the amount of the allowable loss which, but for this subsection, would arise.

(c) For the purposes of paragraph (b), the date on which the whole or part of a debt is released shall be determined on the same basis as the release of the whole or part of a specified debt is treated as having been effected in section 87B(4).