[F1The separate enterprise principleU.K.
Textual Amendments
F1Pt. 8B inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1
357NCThe separate enterprise principleU.K.
(1)The profits of the company that are attributable to its NIRE are those that the NIRE would have made if it were a distinct and separate enterprise which—
(a)engaged in the same or similar activities under the same or similar conditions, and
(b)dealt wholly independently with the company.
(2)In applying subsection (1) it is to be assumed that—
(a)the NIRE has the same credit rating as the company, and
(b)the NIRE has such equity and loan capital as it could reasonably be expected to have in the circumstances specified in that subsection.
(3)In this Chapter the principle in subsection (1) (read with subsection (2)) is called “the separate enterprise principle”.
357NDTransactions treated as being on arm's length termsU.K.
In accordance with the separate enterprise principle, transactions between the company's NIRE and any other part of the company are treated as taking place on such terms as would have been agreed between parties dealing at arm's length.
357NEProvision of goods or services for NIREU.K.
(1)This section applies if the company provides its NIRE with goods or services.
(2)If the goods or services are of a kind that the company supplies, in the ordinary course of business, to third parties dealing with it at arm's length, the matter is dealt with as a transaction to which the separate enterprise principle applies.
(3)If not, the matter is dealt with as an expense incurred by the company for the purposes of its NIRE (see section 357NF).]