Section 99 — Corporation Tax Act 2009: Arrangements not at arm's length

Arrangements not at arm's length 99 1 This section applies if—

a two or more of the parties to the property arrangements are connected persons, and b the terms of those arrangements are not such as would reasonably have been expected if those persons had been dealing at arm's length.

2 The terms of the property arrangements meet the condition in subsection (1)(b) if they differ to a significant extent from the terms which, at the time the arrangements were entered into, would be regarded as normal and reasonable—

a in the market conditions then prevailing, and b between persons dealing with each other at arm's length in the open market.

3 The whole amount or value of the reverse premium brought into account under section 98 is brought into account in the first relevant period of account. 4 “ The first relevant period of account ” means the period of account in which the property transaction is entered into.

5 However if the recipient enters into the property transaction for the purposes of a trade—

a which is not then carried on by the recipient, but b which the recipient subsequently starts to carry on, “ the first relevant period of account ” means the first period of account in which the recipient carries on the trade.