SolvedCFM96610 | Interest restriction: alternative calculations: overview
From HM Revenue & Customs · Corporate Finance Manual
The default approach for calculating group-interest and group-EBITDA is based closely on the amounts recognised in the group’s financial statements.
The following elections allow these amounts to be calculated more closely with the UK tax rules:
Group-EBITDA (chargeable gains) election
Interest allowance (alternative calculation) election