C1C2C3C4Part 4Transfer pricing

Annotations:
Modifications etc. (not altering text)
C1

Pt. 4 excluded by 2010 c. 4, s. 938N (as inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 5 para. 2)

C4

Pt. 4 excluded (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 129(11) (with s. 147, Sch. 17)

CHAPTER 2Key interpretative provisions

Meaning of certain expressions that first appear in section 147

154Interpretation of sections 152 and 153

1

Subsections (3) to (7) apply for the purposes of sections 152 and 153.

2

Subsection (6) applies also for the purposes of subsection (7)(a).

3

“Special relationship” means any relationship by virtue of which the participation condition is met (see section 148) in the case of the affected persons concerned.

4

Any reference to a guarantee includes—

a

a reference to a surety, and

b

a reference to any other relationship, arrangements, connection or understanding (whether formal or informal) such that the person making the loan to the issuing company has a reasonable expectation that in the event of a default by the issuing company the person will be paid by, or out of the assets of, one or more companies.

5

One company (“A”) has a “participatory relationship” with another (“B”) if—

a

one of A and B is directly or indirectly participating in the management, control or capital of the other, or

b

the same person or persons is or are directly or indirectly participating in the management, control or capital of each of A and B.

6

“Security” includes securities not creating or evidencing a charge on assets.

7

Any—

a

interest payable by a company on money advanced without the issue of a security for the advance, or

b

other consideration given by a company for the use of money so advanced,

is to be treated as if payable or given in respect of a security issued for the advance by the company, and references to a security are to be read accordingly.