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)

C5CHAPTER 6Balancing payments

Annotations:
Modifications etc. (not altering text)
C5

Pt. 4 Chs. 1 and 3-6 applied (1.4.2022 in relation to accounting periods beginning on or after that date) by Finance Act 2022 (c. 3), s. 51(1), Sch. 9 paras. 3, 4

195Qualifying conditions for purposes of section 196

1

Conditions A to D are “the qualifying conditions” for the purposes of section 196.

2

Condition A is that only one of the affected persons (“the advantaged person”) is a person on whom a potential advantage in relation to United Kingdom taxation is conferred by the actual provision.

3

Condition B is that the other affected person (“the disadvantaged person”) is within the charge to income tax or corporation tax in respect of profits arising from the relevant activities (see section 216).

4

Condition C is that—

a

a payment (the “balancing payment”) is made, or

b

two or more payments (the “balancing payments”) are made,

to the advantaged person by the disadvantaged person.

5

Condition D is that the sole or main reason for making that payment or those payments is that section 147(3) or (5) applies.