INTM414310 - Exemptions: Existing exemptions

What has been amended, removed, or added in broad terms

There have been no amendments to the other exemptions or the exceptions to those exemptions. In summary:

TIOPA10/S165 (Exemption for dormant companies) and TIOPA10/S166 (Exemption for small and medium-sized enterprises (“SME”)) provide exemptions to the UK transfer pricing rules.

TIOPA10/S167 provides for exceptions to the SME exemption.

There have been no amendments to the related definitions at:

  • TIOPA10/S172 - Meaning of “small enterprise” and “medium-sized enterprise”
  • TIOPA10/S173 - Meaning of “qualifying territory” and “non-qualifying territory”

The Commissioners for HMRC may also give a transfer pricing notice to the potentially advantaged person, for the chargeable period such that the exemption at TIOPA10/S166 does not apply:

  • TIOPA10/S167A – Small enterprises: exception from exemption: transfer pricing notice
  • TIOPA10/S168 – Medium-sized enterprises: exception from exemption: transfer pricing notice

The transfer pricing notice requires the recipient to calculate the profits and losses of that chargeable period in accordance with TIOPA10/S147(3) or (5), in the case of that provision.

The relevant INTM guidance can be found at: