Part 8Intangible fixed assets
Chapter 13Transactions between related parties
Transfers treated as being at market value
847Transfers involving other taxes
1
This section applies if—
a
in a case where section 845(1) applies and the asset is transferred from the company to a related party, the transfer is at less than its market value,
b
in a case where that section applies and the asset is transferred to the company from the related party, the transfer is at more than its market value, and
c
conditions A and B apply.
2
Condition A is that the related party—
a
is not a company, or
b
is a company in relation to which the asset is not a chargeable intangible asset immediately after the transfer to it or, as the case may be, immediately before the transfer from it.
3
Condition B is that the transfer—
a
gives rise to an amount to be taken into account in calculating any person’s income, profits or losses for tax purposes because of a relevant provision, or
b
would do so apart from section 845(1).
4
If this section applies, section 845(1) does not apply in relation to the calculation referred to in subsection (3) for the purposes of any relevant provision.
5
In this section “relevant provision” means—
a
section 209 of ICTA (meaning of “distribution”), and
b
Part 3 of ITEPA 2003 (employment income: earnings and benefits etc treated as earnings).