Taxation (International and Other Provisions) Act 2010 section 28

Transfer pricing: meaning of potential advantage

Schedule 9, paragraph 28 provides a transitional rule concerning the meaning of "potential advantage" in the context of transfer pricing, specifically in relation to distributions paid before 1 July 2009.

• This paragraph deals with the definition of "potential advantage" used in the transfer pricing rules under section 155 of the Act.
• Section 155(6)(b) contains a specific provision about what constitutes a potential advantage in relation to United Kingdom taxation.
• That particular provision is disapplied for any distributions (such as dividends) that were paid before 1 July 2009.
• For distributions paid on or after 1 July 2009, section 155(6)(b) applies in full.