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Home / Simons-Taxes /Business tax /Part B4 Transfer pricing and profit fragmentation /Division B4.1 Transfer pricing /Transfer pricing—UK regime / B4.123 Transfer pricing—meaning of UK tax advantage
Commentary

B4.123 Transfer pricing—meaning of UK tax advantage

Business tax

The transfer pricing rules only apply where there is a provision between two parties that meet the participation test as described in B4.124 and the actual provision:

  1. Ìý

    •ÌýÌýÌýÌý differs from one that would have been made between independent enterprises (in other words, the arm's length provision), and

  2. Ìý

    •ÌýÌýÌýÌý creates a potential UK tax advantage for one or both of those persons

In such situations, the profits or losses of

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