Corporation Tax Act 2009 section 26

Transfer of financial assets

Section 26 sets out the rules governing transfers of loans or other financial assets between a bank's UK permanent establishment and other parts of the same non-UK resident company.

• Applies specifically to non-UK resident companies that are banks
• Covers transfers of loans or financial assets between the UK permanent establishment and any other part of the company
• Transfers are only recognised if they would have taken place between independent enterprises, in line with the separate enterprise principle
• Transfers must be carried out for valid commercial reasons — obtaining a tax advantage is not considered a valid commercial reason