Taxation (International and Other Provisions) Act 2010 section 164

Part to be interpreted in accordance with OECD principles

Section 164 requires the UK's transfer pricing rules to be interpreted consistently with the OECD's Model Tax Convention (Article 9) and the OECD Transfer Pricing Guidelines, subject to certain exceptions for oil-related provisions and exchange gains or losses.

• The transfer pricing rules in Part 4 must be read in a way that is consistent with how Article 9 of the OECD Model Tax Convention operates when incorporated into double taxation treaties entered into by the UK — regardless of whether a treaty actually exists with any particular country.
• The OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (as revised by the BEPS Actions 8–10 Final Reports of October 2015) are imported into UK law as an interpretive aid, and the Treasury may by order designate updated or replacement versions of these Guidelines.
• Several exceptions limit this general principle: oil-related provisions and oil ring-fence trade rules are carved out, and the transfer pricing rules generally do not override the way exchange gains and losses are accounted for under the loan relationships or derivative contracts rules in CTA 2009.
• The "OECD model" is defined as Article 9 of the OECD Model Tax Convention on Income and on Capital as it stood on 9 February 1988 (when ICTA was passed), or any rules in the same or equivalent terms.