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.
(2)For the purposes of subsection (1)(b) the consideration for a transfer falls [F3within that Part] without falling to be adjusted under it if—
[F4(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.
[F5(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 [F6as in that Part (see, respectively, sections 149 and 151 of TIOPA 2010)].
Textual Amendments
F1Words in s. 846(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. 147(2) (with Sch. 9 paras. 1-9, 22)
F2Words in s. 846(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. 147(3) (with Sch. 9 paras. 1-9, 22)
F3Words in s. 846(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. 147(4) (with Sch. 9 paras. 1-9, 22)
F4S. 846(2)(a)(aa) substituted for s. 846(2)(a) (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. 147(5) (with Sch. 9 paras. 1-9, 22)
F5S. 846(2A) 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. 147(6) (with Sch. 9 paras. 1-9, 22)
F6Words in s. 846(3) 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. 147(7) (with Sch. 9 paras. 1-9, 22)