4.—(1) For the purposes of Part 3 of CTA 2009 (trading income) (“Part 3”), a relevant transfer of a trading asset or a trading liability is to be treated in relation to ACo and BCo as being for a consideration such that neither a profit nor a loss accrues to the transferor.
(2) For the purposes of this regulation—
“trading asset” means an asset the proceeds of disposal of which would, but for this regulation, be brought into account as a receipt under Part 3 otherwise than in accordance with section 297 (trading credits and debits to be brought into account under Part 3), section 573 (trading credits and debits to be brought into account under Part 3) or section 747 (assets held for purposes of trade) of CTA 2009;
“trading liability” means a liability the payment for the assumption of which would, but for this regulation, be brought into account as an expense under Part 3 otherwise than in accordance with section 297 or section 573 of CTA 2009.
(3) Schedule 28AA to the Income and Corporation Taxes Act 1988(1) (provisions not at arm’s length) does not apply in relation to a relevant transfer to which paragraph (1) applies.
Schedule 28AA was inserted by Schedule 16 to the Finance Act 1998 (c. 36).