Section 357NC — Corporation Tax Act 2010: The separate enterprise principle

The separate enterprise principle 357NC 1 The profits of the company that are attributable to its NI RE are those that the NI RE would have made if it were a distinct and separate enterprise which—

a engaged in the same or similar activities under the same or similar conditions, and b dealt wholly independently with the company.

2 In applying subsection (1) it is to be assumed that—

a the NI RE has the same credit rating as the company, and b the NI RE has such equity and loan capital as it could reasonably be expected to have in the circumstances specified in that subsection.

3 In this Chapter the principle in subsection (1) (read with subsection (2)) is called “the separate enterprise principle”.