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Chapter INTM489725

Document Cited in Related
Vincent
Published date09 April 2016
Record NumberINTM489725

Application of DPT in the first and second situations (described at INTM489595 and INTM489620) is subject to the participation condition being met in relation to the persons between which the material provision is made or imposed (“C” and “P”).

For the purposes of the third situation (“Avoidance of a UK Taxable Presence”) (INTM489655) there is no participation condition in section 86 between the foreign company and the avoided PE. However, there is a participation condition requirement between the foreign company and “A” (another person) in the mismatch condition (see INTM489675).

So for the purposes of applying the participation condition to the third situation (the section 86 mismatch condition) the “first party” is the foreign company and the second party “A”. For the purposes of applying the participation condition to the first and second situations (section 80 and therefore through the relevant adaptation, section 81) the “first party” is “C” and the second party “P”.

For the purpose of DPT, the participation condition is worded in a similar way to the...

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