[F114(1)This paragraph applies where—U.K.
(a)the appointment of a reporting company has effect in relation to a period of account of a worldwide group,
(b)the reporting company makes a group ratio election in respect of the period of account, and
(c)a related party investor in relation to the period of account is, throughout the period of account, a member of a worldwide group (an “investor worldwide group”) other than that mentioned in paragraph (a).
(2)The reporting company may—
(a)elect that Chapter 5 of Part 10 (interest allowance) is to apply subject to the blended group ratio provisions, or
(b)revoke an election previously made.
(3)An election under this paragraph may—
(a)specify one or more investor worldwide groups,
(b)specify, in relation to any such group, one or more elections under this Schedule that are capable of being made in relation to a period of account by a reporting company of a worldwide group, and
(c)specify that the election is to be treated, for the purposes of the blended group ratio provisions, as having effect, or as not having effect, in relation to periods of account of the investor's worldwide group.
(4)Sub-paragraph (5) applies where—
(a)an election under this paragraph is made in relation to a period of account,
(b)an election under this paragraph was made in relation to any earlier period of account of the group,
(c)the election mentioned in paragraph (b) specified, under sub-paragraph (3)(c), that an election (“the investor's election”) was to be treated as having effect in relation to periods of account of the investor's worldwide group, and
(d)the investor's election was an election which, if made by a reporting company of a worldwide group, would have been irrevocable.
(5)The election mentioned in sub-paragraph (4)(a) must specify, under sub-paragraph (3)(c), that the investor's election is to be treated as having effect in relation to periods of account of the investor's worldwide group.
(6)An election or revocation under this paragraph has effect in relation to the period of account.
(7)An election under this paragraph is referred to in this Part of this Act as a “group ratio (blended) election”.
(8)In this paragraph “the blended group ratio provisions” means the provisions of sections 401 to 403.]
Textual Amendments
F1Sch. 7A inserted (with effect in accordance with Sch. 5 para. 25(1)(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 2 (with Sch. 5 para. 28)