C1C2C3C4Part 4Transfer pricing
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 (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)
C4CHAPTER 4Position, if only one affected person potentially advantaged, of other affected person
Claims: special cases
179Compensating payment if advantaged person is controlled foreign company
F21
Subsection (2) applies if—
a
the actual provision is provision made or imposed in relation to a CFC,
b
for the purpose of determining the CFC's assumed taxable total profits for an accounting period, the CFC's profits and losses are to be calculated in accordance with section 147(3) or (5) in the case of that provision,
c
in relation to the accounting period, sums are charged on chargeable companies at step 5 in section 371BC(1), and
d
in consequence of the application of section 147(3) or (5) as mentioned in paragraph (b), the total of those sums is more than it would otherwise be.
2
Sections 174 to 178 have effect as if the F3CFC were a person on whom a potential advantage in relation to United Kingdom taxation were conferred by the actual provision.
3
In applying sections 174 to 178 in a case in which they apply because of subsection (2)—
a
references to the advantaged person in sections 176(3)(a) and (b) and 177(2), (3) and (4)(b) include a reference to any of the F4chargeable companies on which a sum is charged, and
b
references to corporation tax include a reference to F5the CFC charge.
F14
In this section terms which are defined in Part 9A have the same meaning as they have in that Part.
5
For the purposes of subsections (1)(c) and (d) and (3)(a) assume that any claims made under Chapter 9 of Part 9A for the accounting period were not made.
180C4Application of section 174(2)(a) in relation to transfers of trading stock etc
1
Section 174(2)(a) does not affect the credits to be brought into account by the disadvantaged person in respect of—
a
closing trading stock, or
b
closing work in progress in a trade,
for accounting periods ending on or after the day given by subsection (2).
2
That day is the last day of the accounting period of the advantaged person in which the actual provision was made or imposed.
3
For the purposes of this section “trading stock”, in relation to any trade, has the meaning given by—
a
section 174 of ITTOIA 2005, or
b
section 163 of CTA 2009.
Pt. 4 excluded by 2010 c. 4, s. 938N (as inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 5 para. 2)