Section 397 | Basic interest allowance calculated using fixed ratio method

(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—

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

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

(2)See—

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

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