Legislation – Finance Act 2026

requiring persons specified for the purposes of this paragraph (“reporting entities”) to provide an officer of Revenue and Customs with information of specified descriptions in connection with specified international controlled transactions;

(b)

requiring reporting entities to provide the information—

(i)

at specified times,

(ii)

in relation to specified periods of time, and

(iii)

in a specified form and manner;

(c)

imposing obligations on reporting entities (including obligations to obtain information from specified persons for the purposes of complying with requirements imposed by virtue of paragraph (a));

(d)

about contravention of, or non-compliance with, the regulations (including provision imposing penalties);

(e)

about appeals in relation to the imposition of any penalty.

(2)

The regulations may—

(a)

make different provision for different purposes;

(b)

make provision by reference to things specified in a notice published by the Commissioners (as revised or replaced from time to time) in accordance with the regulations;

(c)

allow any requirement, obligation or other provision that may be imposed or made by reference to subsection (1)(a) to (c) to be made by specific or general direction given by the Commissioners;

(d)

make provision under which the Commissioners or other persons may exercise discretions.

(3)

For the purposes of subsection (1)—

(a)

“specified” means specified in the regulations, and

(b)

a transaction is an international controlled transaction if the transfer pricing condition or the permanent establishment condition is met in relation to it.

(4)

The transfer pricing condition is that—

(a)

the transaction, or a series of transactions of which the transaction forms part, is the means by which provision (within the meaning of Part 4 of TIOPA 2010) has been made or imposed between two persons,

(b)

the participation condition (within the meaning of that Part) is met in relation to that provision,

(c)

one of those persons is—

(i)

a UK resident company,

(ii)

a non-UK resident company within the charge to corporation tax as a result of it falling within paragraph (a), (c) or (d) of section 5(2) of CTA 2009 (deals in or develops UK land, carries on a UK property business or has other UK property income), or

(iii)

a partnership whose members include a company within the charge to corporation tax, and

(d)

the other person is a non-UK resident person or is a partnership whose members include a non-UK resident person.

(5)

The permanent establishment condition is that the transaction is relevant to the determination of—

(a)

exemption adjustments made under section 18A of CTA 2009, or

(b)

the profits of a non-UK resident company that are (for the purposes of the Corporation Tax Acts) attributable to a permanent establishment of the company in the United Kingdom.

(6)

References in this section to a transaction includes any transaction that may be treated to have occurred for the purposes of applying Chapter 3A or 4 of Part 2 of CTA 2009 (profits of permanent establishments).