SCHEDULES
F1F1F2SCHEDULE 28AA Provision not at arm’s length
Sch. 28AA inserted (with effect in accordance with s. 108(5)-(7) of the amending Act) by Finance Act 1998 (c. 36), s. 108(2), Sch. 16
Advantage in relation to United Kingdom taxation
5
1
For the purposes of this Schedule F3. . . 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
F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F97
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—
F10a
disregarded income within the meaning given by section 813 of ITA 2007 (limits on liability to income tax of non-UK residents), or
b
disregarded company income within the meaning given by section 816 of that Act.
F118
For the purposes of sub-paragraph (1) section 209(2)(d) (excessive interest etc treated as distribution) is to be disregarded.
F129
For the purposes of sub-paragraph (1), Schedule 15 to FA 2009 (tax treatment of financing costs and income) is to be disregarded.
Sch. 28AA repealed (1.4.2010 with effect in accordance with s. 381(1) of the repealing Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), Sch. 8 para. 111, Sch. 10 Pt. 2 (with Sch. 9)