Corporation Tax Act 2009

846Transfers not at arm's lengthU.K.

(1)Section 845 does not apply if the consideration for the transfer—

(a)falls to be adjusted for tax purposes under [F1Part 4 of TIOPA 2010] (provision not at arm's length), or

(b)falls within [F2that Part] without falling to be so adjusted.

[F3(1A)Subsection (1B) applies in relation to the transfer of an intangible asset where—

(a)by virtue of subsection (1), section 845 does not apply, and

(b)the market value of the asset is greater than the Part 4 TIOPA amount.

(1B)An amount equal to the market value of the asset less the Part 4 TIOPA amount is to be brought into account for the purposes of corporation tax in relation to the transfer (in addition to the Part 4 TIOPA amount).

(1C)In subsections (1A) and (1B)—

• “market value”, in relation to an asset, has the meaning given in section 845(5);

• “Part 4 TIOPA amount” means the amount which, following the application of Part 4 of TIOPA 2010 in relation to the consideration for the transfer, is brought into account in respect of the consideration for the purposes of corporation tax.]

(2)For the purposes of subsection (1)(b) the consideration for a transfer falls [F4within that Part] without falling to be adjusted under it if—

[F5(a)the condition in section 147(1)(a) of TIOPA 2010 is met,

(aa)the participation condition is met (see subsection (2A)), and]

(b)the actual provision does not differ from the arm's length provision.

[F6(2A)Section 148 of TIOPA 2010 (when the participation condition is met) applies for the purposes of subsection (2)(aa) as it applies for the purposes of section 147(1)(b) of TIOPA 2010.]

(3)In subsection (2) “the actual provision” and “the arm's length provision” have the same meaning [F7as in that Part (see, respectively, sections 149 and 151 of TIOPA 2010)].