INTM573100 - Thin capitalisation: the Advance Thin Capitalisation Agreement: Signing off the ATCA

ATCAs may be signed off by a Local Compliance or LBS International Issues Manager, a member of the Transfer Pricing Group, or the relevant Customer Relationship Manager, subject to local management arrangements, as well as by members of the Transfer Pricing Team at Business International.

Two copies must be signed, by signatories on behalf of the company and HM Revenue and Customs, with one copy to be retained by each party.

Below is the preamble to the agreement as expressed in the Model ATCA, and confirms in accordance with what legislation the agreement is made:

1. This is an agreement made between the parties identified below for the purposes of section 85, Finance Act 1999 in accordance with Statement of Practice 04/07.
2. The agreement determines the tax treatment of the interest arising on the financial provisions identified below for the purposes of Schedule 28AA, Income and Corporation Taxes Act 1988 (‘Schedule 28AA’).
3. In accordance with section 86(3), Finance Act 1999 this agreement may be modified as necessary to enable effect to be given to a mutual agreement made under and for the purposes of any double taxation arrangements.

There are only two parts of the agreement which are obligatory in order to formalise it as an Advance Pricing Agreement: the preamble and the signatures.