Part 2

Charge to corporation tax: basic provisions
Chapter 4

Non-UK resident companies: chargeable profits

The separate enterprise principle: application to non-UK resident banks

Transfer of financial assets
26
1
This section applies if—
a
the non-UK resident company is a bank, and
b
there is a transfer of a loan or other financial asset between the permanent establishment and any other part of the company.
2
In accordance with the separate enterprise principle, the transfer is recognised only if it would have taken place between independent enterprises.
3
The transfer is not recognised if it cannot reasonably be considered that it is carried out for valid commercial reasons.
4
For this purpose the obtaining of a tax advantage is not a valid commercial reason.
Ss. 21-28 applied (19.7.2011) by Finance Act 2011 (c. 11), Sch. 19 para. 26(3)