Section 398 | Basic interest allowance calculated using group 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 group ratio method, is the lower of the following amounts—^F1

(a)the group ratio percentage of the aggregate tax-EBITDA of the group for the period;^F1

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

(2)See—^F1

section 399 for the meaning of “group ratio percentage”;

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

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