Section 410 | Net group-interest expense F1
From legislation.gov.uk
(1)For the purposes of this Part the “net group-interest expense” of a worldwide group for a period of account of the group (“the relevant period of account”) is—F1
Formula
where—
A is the sum of the relevant expense amounts that are recognised in the financial statements of the group for the period as items of profit or loss;
B is the sum of the relevant income amounts that are recognised in the financial statements of the group for the period as items of profit or loss.
(2)Subsection (3) applies where—F1
(a)a relevant expense amount (“the capitalised expense”) is brought into account in financial statements of the group (whether for the relevant period of account or any earlier period) in determining the carrying value of an asset,F1
(b)the asset is not a relevant asset, andF1
(c)in the financial statements of the group for the relevant period of account, any of the carrying value is written down.F1
(3)A in subsection (1) is treated as including so much of the amount written down as is attributable to the capitalised expense.F1
(4)Subsection (5) applies where—F1
(a)a relevant income amount (“the capitalised income”) is brought into account in financial statements of the group (whether for the relevant period of account or any earlier period) in determining the carrying value of an asset,F1
(b)the asset is not a relevant asset, andF1
(c)in the financial statements of the group for the relevant period of account, any of the carrying value is written down.F1
(5)B in subsection (1) is treated as including the amount of the reduction in the amount written down that is attributable to the capitalised income.F1
(5A)If, on the assumption that subsections (3) and (5) applied to relevant assets, an amount would, in accordance with subsection (3) or (5), have been treated as included in A or B in subsection (1)—F1F2
(a)as an amount attributable to the capitalised expense, orF1F2
(b)as an amount attributable to the capitalised income,F1F2
none of that amount is to be included in A or B in that subsection.
(6)See—F1
section 411 for the definitions of “relevant expense amount” and “relevant income amount”;
section 417(5) and (6) for the definition of “relevant asset”;
section 420 for provision affecting amounts recognised in financial statements in respect of certain profits or losses arising from derivative contracts.