Section FM 20 — Income Tax Act 2007: Financial arrangements: transfer at market value

FM 20 Financial arrangements: transfer at market value When this section applies (1) This section applies in an income year in which a company ( company A ) transfers a financial arrangement to another company ( company B ) when— (a) company A and company B are in the same consolidated group at the time of the transfer; and (b) neither section FM 18 nor FM 19 applies to the transfer. Consideration for transfer (2) The consideration for the transfer is the market value of the financial arrangement on the date of the transfer. Relationship with sections EW 38 and GB 21 (3) This section overrides sections EW 38 (Consideration when disposal for no, or inadequate, consideration) and GB 21 (Dealing that defeats intention of financial arrangements rules). Defined in this Act: company , consolidated group , financial arrangement , income year , Compare: 2004 No 35 s FD 10(4), (4C)