Taxation (International and Other Provisions) Act 2010 section 214

Chargeable gains

Section 214 prevents the transfer pricing rules in this Part from interfering with the calculation of chargeable gains or allowable losses under capital gains tax legislation.

• The transfer pricing rules do not affect how chargeable gains or allowable losses are calculated under the Taxation of Chargeable Gains Act 1992 (TCGA 1992)
• The transfer pricing rules cannot convert what would otherwise be income or income losses into chargeable gains or losses for capital gains tax purposes
• Capital gains tax has its own separate arm's length rule under TCGA 1992, so the transfer pricing provisions are not needed for that purpose
• The one exception is where a claim is made under section 174, which allows a disadvantaged party to seek a corresponding adjustment — in that case, the exclusion of chargeable gains does not apply