SCHEDULES

SCHEDULE 8Minor and consequential amendments

Part 2Transfer pricing and advance pricing agreements

Corporation Tax Act 2009 (c. 4)

124

1

Amend section 161 (transfer pricing rules take precedence over rules about disposals and acquisitions of trading stock not made in course of the trade concerned) as follows.

2

In subsection (1)(a) for “Schedule 28AA to ICTA” substitute “ Part 4 of TIOPA 2010 ”.

3

In subsection (1)(b) for “that Schedule” substitute “ that Part ”.

4

For subsection (2) substitute—

2

For the purposes of subsection (1)(b), the relevant consideration falls within Part 4 of TIOPA 2010 without falling to be adjusted under that Part if—

a

the condition in section 147(1)(a) of TIOPA 2010 is met, and

b

the participation condition is met (see subsection (3A)), but

c

either—

i

one of the conditions in section 147(1)(c) and (d) of TIOPA 2010 is not met, or

ii

one of the exceptions mentioned in subsection (3) applies.

5

In subsection (3) for paragraphs (c) and (d) substitute—

c

section 213 of TIOPA 2010 (saving for provisions relating to capital allowances), and

d

section 214 of TIOPA 2010 (saving for provisions relating to chargeable gains).

6

After subsection (3) insert—

3A

Section 148 of TIOPA 2010 (when the participation condition is met) applies for the purposes of subsection (2)(b) as it applies for the purposes of section 147(1)(b) of TIOPA 2010.