(1) In this section -
'asset' means any asset other than -
(a) an asset that is treated by the provisions of section 291A(2) as machinery or plant for the purposes of Chapters 2 and 4 of Part 9, or
(b) an asset acquired as trading stock;
'loan' includes a promissory note and any other agreement or arrangement having a similar effect;
'trading stock' has the same meaning as in section 89.
(2) Subject to subsections (3), (6), (7) and (8), in computing the amount of the profits or gains to be charged to corporation tax under Schedule D, no sum shall be deducted in respect of -
(a) any interest payable on a loan to a company (in this section referred to as the 'investing company') used in acquiring assets from a company which, at the time of the acquiring of the assets, was connected with the investing company, where the loan is made to the investing company by a person who is connected with the investing company, or
(b) any interest payable on any form of refinancing of a loan referred to
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