{
  "url": "https://openlegislation.uk/finance-act-2026/schedule-6/paragraph-24",
  "json_url": "https://openlegislation.uk/finance-act-2026/schedule-6/paragraph-24.json",
  "legislation": "ukpga/2026/11",
  "legislation_title": "Finance Act 2026",
  "legislation_url": "https://openlegislation.uk/finance-act-2026",
  "path": "schedule/6/paragraph/24",
  "kind": "paragraph",
  "number": "24",
  "heading": "Proceeds of realisation",
  "text": "(1) Section 739 (meaning of “proceeds of realisation”) of CTA 2009 is amended as follows.\n(2) After subsection (1A) insert—\n“(1B) Subsection (1A) does not apply to a realisation by a company if—\n(a) either—\n(i) 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 in relation to the realisation had been made or imposed instead of the actual provision in relation to it, or\n(ii) those profits would be so calculated if the actual provision conferred a potential advantage in relation to United Kingdom taxation (within the meaning of that Part) on the company and differed from the arm’s length provision, and\n(b) the realisation is a cross-border realisation.\nSee also section 151(3) of that Part for provision about applying the arm’s length provision in relation to intangible fixed assets.”\n(3) After subsection (2) insert—\n“(3) But where subsection (1A) applies in relation to an amount recognised for accounting purposes, that amount is not to be adjusted as a result of any adjustment required by Part 4 of TIOPA 2010.\n(4) For the purposes of subsection (1B)—\n(a) a realisation is a cross-border realisation if, at the time of the realisation, the other party to the realisation transaction is—\n(i) a UK resident company, but only if it has a qualifying permanent establishment in a territory outside the United Kingdom,\n(ii) a non-UK resident company, other than a non-UK resident company that has a permanent establishment in the United Kingdom with a relevant connection to the transaction,\n(iii) a non-UK resident individual, other than an individual that carries on a trade, profession or vocation in the United Kingdom through a branch or agency where the transaction is for the purposes of that trade, profession or vocation, or\n(iv) a partnership, but only if all of its members are non-UK resident or it has a qualifying permanent establishment in a territory outside the United Kingdom.\n(b) where the other party has a permanent establishment in a territory outside the United Kingdom, that permanent establishment is “qualifying” if—\n(i) exemption adjustments under section 18A(1) of CTA 2009 (exemption for profits or losses of foreign permanent establishments) would be made in calculating the taxable profits of the other party, and\n(ii) those adjustments would include adjustments in respect of the realisation transaction,\n(c) a permanent establishment of the other party in the United Kingdom has a relevant connection to the realisation transaction if the transaction is, in accordance with Chapter 4 of Part 2, attributable to that permanent establishment,\n(d) “branch or agency”—\n(i) means any factorship, agency, receivership, branch or management, but\n(ii) does not include any person within any of the exemptions under sections 835G to 835K of ITA 2007 (persons who are not UK representatives).\n(e) “actual provision” and “arm’s length provision” are to be construed in accordance with Part 4 of TIOPA 2010 (transfer pricing).”",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2026/11/schedule/6/paragraph/24",
    "retrieved_at": "2026-10-29T08:42:24.914774+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}