Corporation Tax Act 2009

161 Transfer pricing rules to take precedence U.K.

(1) Section 159 or 160 does not apply if the relevant consideration—

(a) falls to be adjusted for tax purposes under [F1 Part 4 of TIOPA 2010], or

(b) falls within [F2 that Part] without falling to be so adjusted.

[F3 (2) For the purposes of subsection (1)(b), the relevant consideration falls within Part 4 of TIOPA 2010 without falling to be adjusted under that Part if—

(a) the condition in section 147(1)(a) of TIOPA 2010 is met, and

(b) the participation condition is met (see subsection (3A)), but

(c) either—

(i) one of the conditions in section 147(1)(c) and (d) of TIOPA 2010 is not met, or

(ii) one of the exceptions mentioned in subsection (3) applies.]

(3) The exceptions are those in—

(a) section 447(5) (exchange gains or losses from loan relationships)

(b) section 694(8) (exchange gains or losses from derivative contracts),

[F4 (c) section 213 of TIOPA 2010 (saving for provisions relating to capital allowances), and

(d) section 214 of TIOPA 2010 (saving for provisions relating to chargeable gains).]

[F5 (3A) Section 148 of TIOPA 2010 (when the participation condition is met) applies for the purposes of subsection (2)(b) as it applies for the purposes of section 147(1)(b) of TIOPA 2010.]

(4) In this section “relevant consideration” means—

(a) in relation to section 159, the consideration for the disposal of the trading stock, and

(b) in relation to section 160, the consideration for the acquisition of the trading stock.

Textual Amendments

F1 Words in s. 161(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. 124(2) (with Sch. 9 paras. 1-9, 22)

F2 Words in s. 161(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. 124(3) (with Sch. 9 paras. 1-9, 22)

F3 S. 161(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. 124(4) (with Sch. 9 paras. 1-9, 22)

F4 S. 161(3)(c)(d) 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. 124(5) (with Sch. 9 paras. 1-9, 22)

F5 S. 161(3A) 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. 124(6) (with Sch. 9 paras. 1-9, 22)