Part 4Transfer pricing
CHAPTER 3Exemptions from basic rule
165Exemption for dormant companies
1
Section 147(3) and (5) do not apply in calculating for any chargeable period the profits and losses of a potentially advantaged person if that person is a company which meets the condition in subsection (2).
2
The condition is that—
a
the company was dormant throughout the pre-qualifying period, and
b
apart from section 147, the company has continued to be dormant at all times since the end of the pre-qualifying period.
3
In subsection (2) “the pre-qualifying period” means—
a
if there is an accounting period of the company that ends on 31 March 2004, that accounting period, or
b
if there is no such accounting period, the period of 3 months ending with that date.
4
In this section “dormant” has the meaning given by section 1169 of the Companies Act 2006.