Advantage in relation to United Kingdom taxationU.K.
5(1)For the purposes of this Schedule F1. . . the actual provision confers a potential advantage on a person in relation to United Kingdom taxation wherever, disregarding this Schedule, the effect of making or imposing the actual provision, instead of the arm’s length provision, would be one or both of the following, that is to say—
(a)that a smaller amount (which may be nil) would be taken for tax purposes to be the amount of that person’s profits for any chargeable period; or
(b)that a larger amount (or, if there would not otherwise have been losses, any amount of more than nil) would be taken for tax purposes to be the amount for any chargeable period of any losses of that person.
(2)F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6)F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F7(7)In determining for the purposes of sub-paragraph (1) above the amount that would be taken for tax purposes to be the amount of the profits or losses for a year of assessment in the case of a person who is not resident in the United Kingdom, there shall be left out of account any income of that person which is—
(a)excluded income for the purposes of section 128 of the Finance Act 1995 (limit on income chargeable on non-residents: income tax), or
(b)income to which section 151 of the Finance Act 2003 applies (non-resident companies: extent of charge to income tax).]
Textual Amendments
F1Words in Sch. 28AA para. 5(1) repealed (with effect in accordance with s. 37 of the repealing Act) by Finance Act 2004 (c. 12), s. 30(2)(a), Sch. 42 Pt. 2(1), Note
F2Sch. 28AA para. 5(2)-(6) repealed (with effect in accordance with s. 37 of the repealing Act) by Finance Act 2004 (c. 12), s. 30(2)(b), Sch. 42 Pt. 2(1), Note
F3Sch. 28AA para. 5(2)-(6) repealed (with effect in accordance with s. 37 of the repealing Act) by Finance Act 2004 (c. 12), s. 30(2)(b), Sch. 42 Pt. 2(1), Note
F4Sch. 28AA para. 5(2)-(6) repealed (with effect in accordance with s. 37 of the repealing Act) by Finance Act 2004 (c. 12), s. 30(2)(b), Sch. 42 Pt. 2(1), Note
F5Sch. 28AA para. 5(2)-(6) repealed (with effect in accordance with s. 37 of the repealing Act) by Finance Act 2004 (c. 12), s. 30(2)(b), Sch. 42 Pt. 2(1), Note
F6Sch. 28AA para. 5(2)-(6) repealed (with effect in accordance with s. 37 of the repealing Act) by Finance Act 2004 (c. 12), s. 30(2)(b), Sch. 42 Pt. 2(1), Note
F7Sch. 28AA para. 5(7) inserted (with effect in accordance with s. 37 of the amending Act) by Finance Act 2004 (c. 12), s. 30(2)(c)