Section 846 — Corporation Tax Act 2009: Transfers where provision subject to transfer pricing but section 147(3) or (5) does not apply

Transfers where provision subject to transfer pricing but section 147(3) or (5) does not apply 846 1 This section applies to a person who is a company or related party to whom, or from whom, a transfer of an intangible fixed asset is made if—

a the basic rule in section 845 would apply in relation to that person and that transfer but does not as a result of subsection (4ZA) of that section (provision subject to transfer pricing),

and b the profits and losses of that person are not required, under section 147(3) or (5) of TIOPA 2010, to be calculated as if the arm’s length provision had been made instead of the provision comprising the transfer or of which the transfer forms part.

2 Section 147(3) of that Act applies to that person in relation to the provision comprising the transfer, or of which the transfer forms part, as if—

a the reference to the “ potentially advantaged person ” were to that person, and b the reference to the “ actual provision ” were to the provision comprising the transfer or of which the transfer forms part. See also section 151(3) of that Act for provision about applying the arm’s length provision in relation to intangible fixed assets.