Regulation 6 Information that may be excluded from the Local File

(1)

A relevant person does not have to include information in the Local File in respect of a controlled transaction where, at any time during the relevant tax period, the specified person and the other affected person are each—

(a)

a company resident in the United Kingdom for tax purposes,

(b)

trustees of a trust where the trustees are resident in the United Kingdom for tax purposes in accordance with section 475 of the Income Tax Act 2007^f1, or

(c)

partners in a partnership where all of the partners are resident in the United Kingdom for tax purposes.

(2)

Paragraph (1) does not apply if—

(a)

the specified person and the other affected person are members of the same MNE Group, and

(b)

in respect of the relevant period—

(i)

one or both of them has made an election under section 357A of the Corporation Tax Act 2010 (election for special treatment of profits from patents etc.)^f2, or

(ii)

one or both of them is carrying on a ring fence trade.

(3)

A relevant person does not have to include information in the Local File in respect of a controlled transaction where, during the relevant tax period, an advance pricing agreement made on or before 31st March 2023 has effect in relation to that transaction.

(4)

In this regulation—

“advance pricing agreement” means an advance pricing agreement described in section 218 of TIOPA 2010;
“the other affected person” has the meaning given in regulation 3(1)(a);
“ring fence trade” in relation to—
1. (a)
  
  corporation tax, has the meaning given in section 277 of the Corporation Tax Act 2010 (oil activities);
2. (b)
  
  income tax, has the meaning given in section 225D of the Income Tax (Trading and Other Income) Act 2005 (oil activities)^f3.

Annotations

Footnotes

f1: Section 475 was amended by paragraph 103 of Schedule 45 and paragraph 56 of Schedule 46 to the Finance Act 2013 (c. 29).
f2: 2010 c. 4. Section 357A was inserted by paragraph 1 of Schedule 2 to the Finance Act 2012 (c. 14) and amended by section 64(2) of the Finance Act 2016 (c. 24).
f3: 2005 c. 5. Section 225D was inserted by paragraph 2 of Schedule 1 to the Taxation (International and Other Provisions) Act 2010.