Section 357NC The separate enterprise principleF1

(1)

The profits of the company that are attributable to its NIRE are those that the NIRE would have made if it were a distinct and separate enterprise which—

(a)

engaged in the same or similar activities under the same or similar conditions, and

(b)

dealt wholly independently with the company.

(2)

In applying subsection (1) it is to be assumed that—

(a)

the NIRE has the same credit rating as the company, and

(b)

the NIRE has such equity and loan capital as it could reasonably be expected to have in the circumstances specified in that subsection.

(3)

In this Chapter the principle in subsection (1) (read with subsection (2)) is called “the separate enterprise principle”.

Annotations

Textual amendments

F1: Pt. 8B inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1

Notes on Chapter 7

Textual amendments

F2: Words in Pt. 8B Ch. 7 heading inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 7 para. 8