99Arrangements not at arm’s length
(1)This section applies if—
(a)two or more of the parties to the property arrangements are connected persons, and
(b)the terms of those arrangements are not such as would reasonably have been expected if those persons had been dealing at arm’s length.
(2)The terms of the property arrangements meet the condition in subsection (1)(b) if they differ to a significant extent from the terms which, at the time the arrangements were entered into, would be regarded as normal and reasonable—
(a)in the market conditions then prevailing, and
(b)between persons dealing with each other at arm’s length in the open market.
(3)The whole amount or value of the reverse premium brought into account under section 98 is brought into account in the first relevant period of account.
(4)“The first relevant period of account” means the period of account in which the property transaction is entered into.
(5)However if the recipient enters into the property transaction for the purposes of a trade—
(a)which is not then carried on by the recipient, but
(b)which the recipient subsequently starts to carry on,
“the first relevant period of account” means the first period of account in which the recipient carries on the trade.