On-line
tool: Step 1 - Taxpayer is not a body corporate or a partnership
The transfer pricing rules are primarily seen as applying to companies
and partnerships, but it is worth noting that the rules can apply to
any other legal “person”, such as individuals and trusts.
However, such persons are only caught if they control
a company or partnership (not vice-versa).
So, for instance, if an individual owns a company, the transfer pricing
rules potentially apply to the individual as well as the company (in
relation to transactions between them).
This means that certain entrepreneurs who own companies might (unless
they are excluded by steps 2-5) have to review their interactions with
the companies they control,
for instance the salary they are paid. This might include some
surprising people, such as 'megastar' pop stars, who tend to supply
their services via personal services companies.
The rules do not apply to transactions between, for instance, a husband
and wife, or an individual and a trust.
The 'small print'
The
comments on this page and elsewhere on this website are of a
general nature. It is not practicable in a general review such as
this
to consider every convolution of the UK transfer pricing rules or of
any other tax law that may be relevant. Moreover, these pages
naturally do not take into account the specific facts relating to any
particular taxpayer. Therefore, although the guidance in this
website
should give a good indication of the likely position under the transfer
pricing rules, taxpayers should obtain professional advice to verify
the position, or carry out their own analysis.
Neither
TPS nor its affiliates
and employees
make any representation regarding the
completeness or accuracy thereof and they accept no responsibility for
any loss or damage incurred as a result of any user acting or
refraining from acting upon anything contained on these pages or upon
its omission therefrom.
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