SCHEDULE 7Avoidance involving financial arrangements
Transactions not at arm's length: exceptions relating to groups of companies
16
(1)
In Schedule 9 to FA 1996 (loan relationships) paragraph 11 (transactions not at arm's length) is amended as follows.
(2)
“(3)
Sub-paragraph (1) above does not apply if the related transaction—
(a)
is a transaction as a result of which paragraph 12 below (groups)—
(i)
applies by virtue of sub-paragraph (1)(a) of it, or
(ii)
would so apply, apart from sub-paragraph (2A) of it (transferor using fair value accounting), or
(b)
is part of a series of transactions as a result of which that paragraph—
(i)
applies by virtue of sub-paragraph (1)(b) of it, or
(ii)
would so apply, apart from sub-paragraph (2A) of it.”.
(3)
In consequence, omit sub-paragraph (5) (construction of references to a member of a group).
(4)
The amendments made by this paragraph have effect where the related transaction is on or after 16th March 2005.