Regulation 3 Meaning of controlled transaction

(1)

In these Regulations, and in the transfer pricing guidelines so far as they apply for the purposes of these Regulations, a transaction or series of transactions is a “controlled transaction” in relation to a relevant person if—

(a)

provision has been made or imposed between a specified person and another person (“the other affected person”) by means of the transaction or series of transactions,

(b)

the participation condition in section 148 of TIOPA 2010 is met in relation to that provision,

(c)

that condition is not met only because of section 161 or 162 of TIOPA 2010 (indirect participation: financing cases), and

(d)

the provision is not within section 147(7) of TIOPA 2010 (transactions involving oil).

(2)

In these Regulations, “specified person”, in relation to a relevant person, means—

(a)

in the case of a company, the relevant person,

(b)

in the case of a trust, the trustees of the trust of which the relevant person is a trustee, and

(c)

in the case of a partnership, the partners in the partnership of which the relevant person is a partner.

(3)

In paragraph (1), “transaction” and “series of transactions” have the meanings given in section 150 of TIOPA 2010.