Section 397 | Basic interest allowance calculated using fixed ratio method ^F1

(1)For the purposes of section 396, the basic interest allowance of a worldwide group for a period of account of the group, calculated using the fixed ratio method, is the lower of the following amounts—^F1

(a)30% of the aggregate tax-EBITDA of the group for the period;^F1

(b)the fixed ratio debt cap of the group for the period.^F1

(2)See—^F1

section 400 for the meaning of “fixed ratio debt cap”;

section 405 for the meaning of “aggregate tax-EBITDA”.