Corporation Tax Act 2010

533 Financial statements: supplementary

(1) A financial statement under section 532(2)(a) or (c) must specify, in relation to each member of the group—

(a) profits (calculated in accordance with international accounting standards),

(b) expenses (calculated in accordance with international accounting standards),

(c) profits before tax excluding gains or losses on property (whether realised or not) calculated in accordance with international accounting standards, and

(d) assets valued—

(i) at the beginning of the accounting period,

(ii) in accordance with international accounting standards,

(iii) using fair value where there is a choice, and

(iv) ignoring liabilities secured against or otherwise relating to the assets.

(2) A financial statement under section 532(2)(b) must specify profits (calculated in accordance with section 599) for each member of the group.

(3) If a non-member of the group holds a percentage of the beneficial interest in a member of the group (other than the principal company), the financial statements under section 532(2) must exclude that percentage of profits, expenses, gains, losses, assets and liabilities of the member.

(4) Percentages of beneficial interest for the purposes of subsection (3) are to be determined by reference to beneficial entitlement to profits available for distribution to equity holders.

(5) The Commissioners for Her Majesty’s Revenue and Customs may by regulations—

(a) make further provision relating to the content of a financial statement under section 532,

(b) prescribe the form of a financial statement, and

(c) specify a time before which a financial statement must be submitted to an officer of Revenue and Customs.

(6) Regulations under subsection (5)(a) may in particular—

(a) permit or require apportionment or otherwise prescribe or refer to accounting practice;

(b) provide for the inclusion or exclusion of specified profits, expenses, gains, losses, assets and liabilities;

(c) make provision about the treatment of an interest in a business held by a member.