Section 172F | Transfer pricing rules to take precedence ^F1

(1)Section 172D or 172E does not apply if the relevant consideration—^F1

(a)falls to be adjusted for tax purposes under Part 4 of TIOPA 2010, or^F1F2

(b)falls within that Part without falling to be so adjusted.^F1F3

(1A)Subsection (1B) applies in relation to a disposal or acquisition if—^F1F4

(a)by virtue of subsection (1), section 172D or 172E does not apply, and^F1F4

(b)the market value amount is greater than the Part 4 TIOPA amount.^F1F4

(1B)An amount equal to the market value amount less the Part 4 TIOPA amount is to be brought into account in calculating the profits of the trade (in addition to the Part 4 TIOPA amount).^F1F4

(1C)In subsections (1A) and (1B)—^F1F4

“market value amount” means the amount referred to in section 172D(2)(a) or 172E(2)(a);

“Part 4 TIOPA amount” means the amount which, following the application of Part 4 of TIOPA 2010 to the relevant consideration, is brought into account in respect of the relevant consideration in calculating the profits of the trade.

(2)For the purposes of subsection (1)(b), the relevant consideration falls within Part 4 of TIOPA 2010 without falling to be adjusted under that Part if—^F1F5

(a)the condition in section 147(1)(a) of TIOPA 2010 is met, and^F1F6

(aa)the participation condition is met (see subsection (2B)), but^F1F6

(b)either—^F1F6

(i)one of the conditions in section 147(1)(c) and (d) of TIOPA 2010 is not met, or^F1F6

(ii)one of the exceptions mentioned in subsection (2A) applies.^F1F6

(2A)The exceptions are those in—^F1F7

(a)section 447(5) of CTA 2009 (exchange gains or losses from loan relationships),^F1F7

(b)section 694(8) of CTA 2009 (exchange gains or losses from derivative contracts),^F1F7

(c)section 213 of TIOPA 2010 (saving for provisions relating to capital allowances), and^F1F7

(d)section 214 of TIOPA 2010 (saving for provisions relating to chargeable gains).^F1F7

(2B)Section 148 of TIOPA 2010 (when the participation condition is met) applies for the purposes of subsection (2)(aa) as it applies for the purposes of section 147(1)(b) of TIOPA 2010.^F1F7

(3)In this section “relevant consideration” means—^F1

(a)in relation to section 172D, the consideration for the disposal of the stock, and^F1

(b)in relation to section 172E, the consideration for the acquisition of the trading stock.^F1