Profit: financing-cost ratio
6(1)In section 115 (profit: financing-cost ratio), after subsection (3) insert—
“(3A)The Commissioners for Her Majesty’s Revenue and Customs may waive a charge in respect of an accounting period where they think that—
(a)the company was in severe financial difficulties at a time in the accounting period,
(b)the result of the sum specified in subsection (2) is less than 1.25 in respect of the accounting period because of circumstances that arose unexpectedly, and
(c)in those circumstances, the company could not reasonably have taken action to avoid the result being less than 1.25.
(3B)The regulations may specify criteria to be applied by the Commissioners in determining whether to waive a charge.”
(2)The Commissioners may waive a charge in respect of accounting periods ending before the day on which this Act is passed.