Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

International Exchange of Information Manual

From
HM Revenue & Customs
Updated
, see all updates

Exchange of a ruling under both Action 5 the DAC: Example

IEIM560020: Exchange of a ruling under both Action 5 the DAC: Example

HMRC agrees an advance thin capitalisation agreement, (ACTA), with a UK resident company in respect of a loan advanced by its immediate parent resident in the US.  The ultimate parent of the group is also resident in the US.

The following exchanges are required:

Action 5

An ATCA is a unilateral APA and so must be exchanged in accordance with Action 5 with the following jurisdictions (IEIM540300):

  • The ultimate parent (USA)
  • The immediate parent (USA)
  • Related parties (USA)

Therefore a summary of the ATCA should be exchanged with the US under the UK/USA Double Taxation Convention.

 

The DAC

The DAC requires that summaries of all APAs are exchanged (IEIM550300).  Note that the exchange should be made even though no person in other EU Member States likely to be affected by the ATCA.

 

For details of what and how to exchange please see IEIM570000.