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Corporation Tax Act 2009
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Changes and effects yet to be applied to the whole Act associated Parts and Chapters:
- Blanket amendment words substituted by S.I. 2011/1043 art. 3 4
Whole provisions yet to be inserted into this Act (including any effects on those provisions):
- s. 322(2A)(zb) inserted by 2016 c. 24 s. 73(5)
- s. 934(1A)(1B) inserted by 2023 c. 30 Sch. 2 para. 12(2)
- s. 962(3A) inserted by 2023 c. 30 Sch. 2 para. 12(5)(b)
- s. 962A(3A) inserted by 2023 c. 30 Sch. 2 para. 12(6)(b)
- s. 963(1A) inserted by 2023 c. 30 Sch. 2 para. 12(7)(a)
- s. 1058B(5)(ea) inserted by 2023 c. 20 Sch. para. 57
- s. 1094(2A)-(2C) inserted by 2012 c. 14 Sch. 3 para. 13(3)
- s. 1106(4A)-(4C) inserted by 2012 c. 14 Sch. 3 para. 14(3)
- s. 1138A applied by S.I. 2024/348 reg. 3
161Transfer pricing rules to take precedenceU.K.
This section has no associated Explanatory Notes
(1)Section 159 or 160 does not apply if the relevant consideration—
(a)falls to be adjusted for tax purposes under [F1Part 4 of TIOPA 2010], or
(b)falls within [F2that Part] without falling to be so adjusted.
[F3(1A)Subsection (1B) applies in relation to a disposal or acquisition if—
(a)by virtue of subsection (1), section 159 or 160 does not apply, and
(b)the market value amount is greater than the Part 4 TIOPA amount.
(1B)An amount equal to the market value amount less the Part 4 TIOPA amount is to be brought into account in calculating the profits of the trade (in addition to the Part 4 TIOPA amount).
(1C)In subsections (1A) and (1B)—
“market value amount” means the amount referred to in section 159(2)(a) or 160(2)(a);
“Part 4 TIOPA amount” means the amount which, following the application of Part 4 of TIOPA 2010 to the relevant consideration, is brought into account in respect of the relevant consideration in calculating the profits of the trade.]
[F4(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.]
(3)The exceptions are those in—
(a)section 447(5) (exchange gains or losses from loan relationships)
(b)section 694(8) (exchange gains or losses from derivative contracts),
[F5(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).]
[F6(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.]
(4)In this section “relevant consideration” means—
(a)in relation to section 159, the consideration for the disposal of the trading stock, and
(b)in relation to section 160, the consideration for the acquisition of the trading stock.
Textual Amendments
F1Words in s. 161(1)(a) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 124(2) (with Sch. 9 paras. 1-9, 22)
F2Words in s. 161(1)(b) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 124(3) (with Sch. 9 paras. 1-9, 22)
F3S. 161(1A)-(1C) inserted (with application in accordance with s. 40(3) of the amending Act) by Finance (No. 2) Act 2015 (c. 33), s. 40(1)
F4S. 161(2) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 124(4) (with Sch. 9 paras. 1-9, 22)
F5S. 161(3)(c)(d) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 124(5) (with Sch. 9 paras. 1-9, 22)
F6S. 161(3A) inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 124(6) (with Sch. 9 paras. 1-9, 22)
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