Taxation (International and Other Provisions) Act 2010 (c. 8)

Part 4 U.K. Transfer pricing

CHAPTER 6 U.K. Balancing payments

202 Election, in guarantee case, to pay tax rather than make balancing payments U.K.

(1) If each of the pre-conditions (see section 201) is met, the disadvantaged person may make an election—

(a) to make no balancing payment within section 198 to the advantaged person in connection with section 147(3) or (5) applying because of section 153 in relation to the relevant security in a chargeable period, but

(b) instead, to undertake sole responsibility for discharging the advantaged person's liability to tax for that period so far as resulting from section 147(3) or (5) applying because of section 153 in relation to the relevant security.

(2) Section 203 contains provision about the making and effect of elections under this section.

(3) In this section, the following expressions have the meaning given by section 201—

• “the advantaged person”,

• “the disadvantaged person”, and

• “the relevant security”.