Taxation (International and Other Provisions) Act 2010 section 275

Meaning of "company to which this Chapter applies"

Section 275 defines which companies fall within the scope of the transfer pricing rules in this Chapter, based on whether they are party to transactions that meet certain conditions.

• A company falls within the Chapter if it is party to a provision made or imposed between two affected persons, as defined in Chapter 1 of Part 4, and if that provision meets the basic pre-condition for the transfer pricing rules to apply.
• The company must also be advantaged by the provision — meaning the provision results in a tax advantage for the company compared to what would have applied under arm's length terms.
• The basic pre-condition broadly requires that the terms of the transaction between connected or associated parties differ from those that would have been agreed between independent parties dealing at arm's length.
• This definition was amended by Finance (No. 2) Act 2017 to align with updates to the wider transfer pricing framework in Part 4 of the Act.

---