Taxation (International and Other Provisions) Act 2010 (c. 8)

Part 7 U.K. Tax treatment of financing costs and income

Modifications etc. (not altering text)

C1 Pt. 7 excluded by 2010 c. 4, s. 938N (as inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 5 para. 2)

C2 Pt. 7 excluded by 2010 c. 4, s. 938V(d) (as inserted (with effect in accordance with Sch. 20 para. 6 of the amending Act) by Finance Act 2013 (c. 29), Sch. 20 para. 3)

CHAPTER 2 U.K. Application of Part

262 UK net debt of worldwide group for period of account of worldwide group U.K.

(1) [F1 A reference in this Chapter] to the “UK net debt” of the worldwide group for a period of account of the group is to the sum of the net debt amounts of each company that was a relevant group company [F2 or a group securitisation company] at any time during the period.

(2) In this section “net debt amount”, in relation to a company, means the average of—

(a) the net debt of the company as at that company's start date, and

(b) the net debt of the company as at that company's end date.

For the meaning of “net debt”, see section 263.

(3) If the amount determined in accordance with subsection (2) is less than £3 million, the net debt amount of the company is nil.

(4) If a company is [F3 a dormant company] at all times in the period beginning with that company's start date and ending with that company's end date, the net debt amount of the company is nil.

(5) The Treasury may by order amend subsection (3) by substituting a higher or lower amount for the amount for the time being specified there.

(6) An order under subsection (5) may only be made if a draft of the statutory instrument containing the order has been laid before and approved by a resolution of the House of Commons.

(7) An order under subsection (5) may only have effect in relation to periods of account of the worldwide group beginning after the date on which the order is made.

(8) In this Chapter—

(a) “the start date” of a company means the first day of the period of account of the worldwide group or, if later, the first day in the period on which the company was a relevant group company [F4 or a group securitisation company], and

(b) “the end date” of a company means the last day of the period of account of the worldwide group or, if earlier, the last day in the period on which the company was a relevant group company [F5 or a group securitisation company].

Textual Amendments

F1 Words in s. 262(1) substituted (retrospectively) by Finance (No. 3) Act 2010 (c. 33), Sch. 5 paras. 3(2)(a), 36(1)

F2 Words in s. 262(1) inserted (retrospectively) by Finance (No. 3) Act 2010 (c. 33), Sch. 5 paras. 3(2)(b), 36(1)

F3 Words in s. 262(4) substituted (with effect in accordance with Sch. 5 para. 22(2) of the amending Act) by Finance Act 2012 (c. 14), Sch. 5 para. 2

F4 Words in s. 262(8)(a) inserted (retrospectively) by Finance (No. 3) Act 2010 (c. 33), Sch. 5 paras. 3(3), 36(1)

F5 Words in s. 262(8)(b) inserted (retrospectively) by Finance (No. 3) Act 2010 (c. 33), Sch. 5 paras. 3(3), 36(1)