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Section 396 | The interest allowance of a worldwide group for a period of account

From legislation.gov.uk

(1)For the purposes of this Part “the interest allowance” of a worldwide group for a period of account of the group is—

Formula

A+B

where—

A is the basic interest allowance of the group for the period;

B is the amount (if any) of the aggregate net tax-interest income of the group for the period (see section 390(3) and (4)).

(2)In subsection (1) “the basic interest allowance” means—

(a)where no group ratio election is in force in relation to the period, the basic interest allowance calculated using the fixed ratio method (see section 397);

(b)where such an election is in force in relation to the period, the basic interest allowance calculated using the group ratio method (see section 398).