Section 229E | Allocation to qualifying members ^F1

(1)Take the following steps to determine how much of an untaxed amount is to be allocated to each qualifying member located in the United Kingdom—^F1

Step 1Determine the number of employees of the member in the accounting period (“the relevant period”) to which the untaxed amount relates.

Step 2Determine the total number of employees for the relevant period of qualifying members of the group located in the United Kingdom.

Step 3Divide the result of Step 1 by the result of Step 2.

Step 4Determine the value of tangible fixed assets of the member for the relevant period.

Step 5Determine the value of tangible fixed assets for the relevant period of the qualifying members of the group located in the United Kingdom.

Step 6Divide the result of Step 4 by the result of Step 5.

Step 7Add together the results of Step 3 and Step 6 and divide that sum by 2.

Step 8The untaxed amount to be allocated to the member is—

if the nil asset value condition is met, the UK proportion multiplied by the result of Step 3;

if the nil employee condition is met, the UK proportion multiplied by the result of Step 6;

in any other case, the UK proportion multiplied by the result of Step 7.

(2)For the purposes of subsection (1)—^F1

(a)the “nil asset value condition” is met if—^F1

(i)the result of Step 5 is nil, but^F1

(ii)the result of Step 2 is not nil;^F1

(b)the “nil employee condition” is met if—^F1

(i)the result of Step 2 is nil, but^F1

(ii)the result of Step 5 is not nil.^F1

(3)This section is subject to section 229F.^F1