Corporation Tax Act 2009 section 446

Bringing into account adjustments made under Part 4 of TIOPA 2010

Section 446 explains how transfer pricing adjustments made under the arm's length rules interact with the loan relationships regime, ensuring that imputed amounts are taxed in the same way as real ones.

• Where transfer pricing rules treat an amount as profits or losses from a loan relationship, the resulting credits or debits are brought into account as if they were actual profits or losses
• Where an amount is treated as interest payable under a loan relationship, credits or debits are recognised as though the interest were genuinely payable
• Where an amount is treated as expenses incurred in connection with a loan relationship, debits are recognised as though the expenses were actually incurred
• A credit cannot be brought into account to the extent it relates to a corresponding debit that was itself never brought into account