26Transfer of financial assetsU.K.
This section has no associated Explanatory Notes
(1)This section applies if—
(a)the non-UK resident company is a bank, and
(b)there is a transfer of a loan or other financial asset between the permanent establishment and any other part of the company.
(2)In accordance with the separate enterprise principle, the transfer is recognised only if it would have taken place between independent enterprises.
(3)The transfer is not recognised if it cannot reasonably be considered that it is carried out for valid commercial reasons.
(4)For this purpose the obtaining of a tax advantage is not a valid commercial reason.