Section 424 | Employers' pension contributions

(1)Where an interest allowance (alternative calculation) election has effect in relation to a period of account of a worldwide group, this Chapter applies in relation to the period subject to this section.

(2)The definition of “the group's profit before tax” in subsection (2) of section 416 has effect as if references to amounts that are recognised in the financial statements of the group for the period, as items of profit or loss, did not include amounts so recognised in respect of employer pension contributions.

(3)The group's profit before tax, as defined in that section, is reduced by the total of the relief to which members of the group are entitled, by virtue of sections 196 to 200 of FA 2004, in respect of relevant employer pension contributions paid during the period.

(4)In this section—

(a)“employer pension contributions” means contributions paid by an employer under a registered pension scheme in respect of an individual;

(b)employer pension contributions are “relevant” if they are paid at a time at which the employer is a member of the group.