Part 4Transfer pricing

CHAPTER 5Position of guarantor of affected person's borrowing liabilities

191When sections 192 to 194 apply

(1)

Sections 192 to 194 apply if—

(a)

one of the affected persons (“the F1borrower”) F2has borrowing liabilities,

(b)

those liabilities are to any extent the subject of a guarantee provided by a company (“the guarantor company”),

(c)

in calculating the profits and losses of the F3borrower for tax purposes, the amounts to be deducted in respect of interest or other amounts payable F4in respect of the borrowing are required to be reduced (whether or not to nil) under section 147(3) or (5), and

F5(d)

the reduction is a result of provision for the guarantee not being regarded as arm’s length in accordance with section 153A (certain guarantees not capable of being arm’s length).

F6(2)

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F6(3)

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F6(4)

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(5)

In this Chapter—

F7“borrowing”, “guarantee” and “implicit support” have the meanings they have in sections 153A and 153B (see section 154);

“the borrowing transaction” means the transaction mentioned in subsection (1)(a);

“the guarantor company” has the meaning given by subsection (1)(b),

“the F8borrower” has the meaning given by subsection (1)(a), and

F9...