Section 399 | The group ratio percentage

From legislation.gov.uk

(1)For the purposes of this Part “the group ratio percentage” of a worldwide group for a period of account of the group is (subject to subsection (2)) the following proportion expressed as a percentage—

Formula

\frac{A}{B}

where—

A is the qualifying net group-interest expense of the group for the period;

B is the group-EBITDA of the group for the period.

(2)“The group ratio percentage” is 100% where—

(a)the percentage determined under subsection (1) is negative or higher than 100%, or

(b)B in that subsection is zero.

(3)See—

section 414 for the meaning of “qualifying net group-interest expense”;

section 416 for the meaning of “group-EBITDA”.