{
  "url": "https://openlegislation.uk/finance-act-2026/schedule-6/paragraph-26",
  "json_url": "https://openlegislation.uk/finance-act-2026/schedule-6/paragraph-26.json",
  "legislation": "ukpga/2026/11",
  "legislation_title": "Finance Act 2026",
  "legislation_url": "https://openlegislation.uk/finance-act-2026",
  "path": "schedule/6/paragraph/26",
  "kind": "paragraph",
  "number": "26",
  "heading": "Grant of licence or other right treated as at market value",
  "text": "(1) Section 849AB of CTA 2009 (grant of licence or other right treated as at market value) is amended as follows.\n(2) After subsection (1) insert—\n“(1A) But this section does not apply in relation to a person (either the company or the related party) if—\n(a) either—\n(i) the profits and losses of the person are to be calculated for tax purposes as if the arm's length provision in relation to the grant had been made or imposed instead of the actual provision in relation to the grant as a result of Part 4 of TIOPA 2010 (transfer pricing), or\n(ii) they 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 person, and\n(b) the grant is a cross-border grant.\n(1B) A grant is a cross-border grant if, at the time of the grant, the related party is—\n(a) a UK resident company, but only if it has a qualifying permanent establishment in a territory outside the United Kingdom,\n(b) 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 licence or other right that is the subject of the grant,\n(c) 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 that has a relevant connection to the licence or other right that is the subject of the grant, or\n(d) 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(1C) Where the related party has a permanent establishment in a territory outside the United Kingdom, that permanent establishment is “qualifying” if—\n(a) 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 related party, and\n(b) those adjustments would include adjustments in respect of the licence or other right that is the subject of the grant.\n(1D) A permanent establishment of the related party in the United Kingdom has a relevant connection to the licence or other right that is the subject of the grant if the licence or other right is, in accordance with Chapter 4 of Part 2, attributable to that permanent establishment.\n(1E) A branch or agency of the related party has a relevant connection to the licence or other right that is the subject of the grant if—\n(a) where the related party is the grantor, if the asset from which the licence or other right is derived was used or held for the purposes of the branch or agency immediately before the grant, or\n(b) where the related party is the grantee, the licence or other right was acquired for use by, to be held by or for the purposes of, the branch or agency.\n(1F) In this section “branch or agency”—\n(a) means any factorship, agency, receivership, branch or management, but\n(b) 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(3) In subsection (6) omit paragraph (a).\n(4) In subsection (12), at the appropriate place insert—\n““actual provision” and “arm’s length provision” are to be construed in accordance with Part 4 of TIOPA 2010 (transfer pricing),”.\n(5) Omit section 849AC of CTA 2009.",
  "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/26",
    "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."
}