Part 4

Transfer pricing
CHAPTER 4

Position, if only one affected person potentially advantaged, of other affected person

Claim by affected person who is not advantaged

Claims under section 174 where actual provision relates to a security
175
1
A claim under section 174 may not be made if—
a
the participation condition (see section 148) would not be satisfied but for section 161 or 162,
b
the actual provision is provision in relation to a security issued by one of the affected persons (“the issuer”), and
c
a guarantee is provided in relation to the security by a person with whom the issuer has a participatory relationship.
2
For the purposes of subsection (1), one person (“A”) has a “participatory relationship” with another (“B”) if—
a
one of A and B is directly or indirectly participating in the management, control or capital of the other, or
b
the same person or persons is or are directly or indirectly participating in the management, control or capital of each of A and B.
3
In subsections (1)(b) and (4)(a) “security” includes securities not creating or evidencing a charge on assets.
4
For the purposes of subsection (1)(b), any—
a
interest payable by a company on money advanced without the issue of a security for the advance, or
b
other consideration given by a company for the use of money so advanced,
is to be treated as if payable or given in respect of a security issued for the advance by the company, and references to a security are to be read accordingly.
5
The reference in subsection (1)(c) to a guarantee includes—
a
a reference to a surety, and
b
if the issuer is a company, a reference to any other relationship, arrangements, connection or understanding (whether formal or informal) such that the person making the loan to the issuer has a reasonable expectation that in the event of a default by the issuer the person will be paid by, or out of the assets of, one or more companies.
Pt. 4 Chs. 1 and 3-6 applied (1.4.2022 in relation to accounting periods beginning on or after that date) by Finance Act 2022 (c. 3), s. 51(1), Sch. 9 paras. 3, 4
Pt. 4 excluded (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 2 para. 6(2); S.I. 2011/2329, art. 3
Pt. 4 excluded by 2010 c. 4, s. 938N (as inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 5 para. 2)
Pt. 4 excluded (1.4.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), s. 29, Sch. 4 para. 3(2); S.I. 2011/2576, art. 5
Pt. 4 excluded (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 129(11) (with s. 147, Sch. 17)