Paragraph 21 Loan relationships where provision falls within Part 4 of TIOPA 2010

Section 445 of CTA 2009 (disapplication of independent terms assumption) is amended as follows.

For subsection (1) substitute—

“(1)

Section 444 does not apply in relation to credits or debits of a company if—

(a)

as a result of Part 4 of TIOPA 2010 (transfer pricing), the profits and losses of the company are to be calculated for tax purposes as if the arm's length provision to which those credits or debits would relate had been made or imposed instead of the actual provision to which they relate, or

(b)

those profits would be so calculated if the actual provision —

(i)

conferred a potential advantage in relation to United Kingdom taxation (within the meaning of that Part) on the company, and

(ii)

differed from the arm’s length provision.”

Omit subsections (3) and (3A).