Corporation Tax Act 2009

445 Disapplication of section 444 where Schedule 28AA to ICTA applies

(1) Section 444 does not apply, and Schedule 28AA to ICTA (provision not at arm’s length) applies instead, to credits or debits in respect of amounts which—

(a) fall to be adjusted for tax purposes under that Schedule, or

(b) are within that Schedule without falling to be so adjusted (see subsection (3)).

(2) Subsection (1) applies despite section 464 (amounts brought into account under this Part excluded from being otherwise brought into account), but is subject to—

(a) section 340(7) (disapplication of Schedule 28AA to ICTA where group member replaces another as party to loan), and

(b) section 447(5) (disapplication of that Schedule for exchange gains and losses).

(3) For the purposes of subsection (1), an amount is within Schedule 28AA to ICTA without falling to be adjusted under it in a case where—

(a) the conditions in paragraph 1(1) of that Schedule are met, and

(b) the actual provision does not differ from the arm’s length provision.

(4) For the way in which this Part applies where adjustments are made under Schedule 28AA to ICTA, see section 446.

(5) In this section “the actual provision” and “the arm’s length provision” have the same meaning as in Schedule 28AA to ICTA (see paragraph 1 of that Schedule).