Finance Act 2013

PART 3 Amendments of TIOPA 2010

12 Part 4 of TIOPA 2010 (transfer pricing) is amended as follows.

13 In section 147(6) (list of exceptions to the basic rule stated in that section), after paragraph (b) insert—

“(ba) section 206A (modification of basic rule where allowances restricted for certain oil-related expenditure),”.

14 After section 206 insert—

“206A Modification of basic rule where allowances restricted for certain expenditure

(1) This section applies where—

(a) in a case to which section 165A(1) of CAA 2001 (restriction of allowances for decommissioning expenditure) applies, R’s available qualifying expenditure is restricted under section 165B(2) or 165C of that Act, or

(b) in a case to which section 416ZC(1) of that Act (restriction of allowances for expenditure on site restoration) applies, R’s qualifying expenditure is restricted under section 416ZD(2) or section 165C as applied by section 416ZD(4)(a) of that Act.

(2) In calculating for tax purposes S’s profits and losses in relation to the service provided by S to R, the amount which S is required to bring into account is an amount equal to R’s expenditure (restricted as mentioned in subsection (1)(a) or (b)).

(3) Section 147(3) and (5) do not apply to the extent that they are inconsistent with subsection (2).

(4) In this section “R” and “S” have the meaning given by section 165A or 416ZC of CAA 2001 (as the case may be).”

15 In section 213 (effect of Part 4 on capital allowances), after subsection (2) insert—

“(3) But a claim under section 174 may not be made if the claim would affect the operation of sections 165A to 165E or 416ZC to 416ZE of CAA 2001.”

16 The amendments made by this Part have effect for accounting periods ending on or after the day on which this Act is passed.