70(1)References in this Schedule to the “tested expense amount” for a period of account of the worldwide group are to the sum of the net financing deductions of each relevant group company.
(2)References in this Schedule to the “net financing deduction” of a company for a period of account of the worldwide group are to—
(a)the sum of the company’s financing expense amounts for the period (see paragraph 54), less
(b)the sum of the company’s financing income amounts for the period (see paragraph 55).
(3)References in sub-paragraph (2) to a company’s financing expense amounts or financing income amounts for a period of account of the worldwide group do not include any amount that arises as a result of a transaction that takes place at a time at which the company is not a relevant group company.
(4)Where the amount determined in accordance with sub-paragraph (2) is negative, the net financing deduction of the company for the period is nil.
(5)Where the amount determined in accordance with sub-paragraph (2) is small (see paragraph 72), the net financing deduction of the company for the period is nil.
71(1)References in this Schedule to the “tested income amount” for the period of account of the worldwide group are to the sum of the net financing incomes of each UK group company.
(2)The reference in sub-paragraph (1) to the “net financing income” of a company for a period of account of the worldwide group is to—
(a)the sum of the company’s financing income amounts for the period (see paragraph 55), less
(b)the sum of the company’s financing expense amounts for the period (see paragraph 54).
(3)References in sub-paragraph (2) to a company’s financing expense amounts or financing income amounts for a period of account of the worldwide group do not include any amount that arises as a result of a transaction that takes place at a time at which the company is not a UK group company.
(4)Where the amount determined in accordance with sub-paragraph (2) is negative, the net financing income of the company for the period is nil.
(5)Where the amount determined in accordance with sub-paragraph (2) is small (see paragraph 72), the net financing income of the company for the period is nil.
72(1)An amount determined in accordance with paragraph 70(2) or 71(2) is “small” if it is less than £500,000.
(2)The Treasury may by order amend sub-paragraph (1) by substituting a higher or lower amount for the amount for the time being specified there.
(3)No order may be made under sub-paragraph (2) unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, the House of Commons.
(4)An order under sub-paragraph (2) may only have effect in relation to periods of account of the worldwide group beginning after the date on which the order is made.