SCHEDULES
SCHEDULE 19The bank levy
Part 4Chargeable equity and liabilities
F1Designated FPE entities: non-UK allocated equity and liabilities etc
15Z2
1
This paragraph applies for the purposes of Step 2 in paragraph 15Z1.
2
The assets of the foreign permanent establishment are those which it would have were it a distinct and separate enterprise which—
a
engaged in the same or similar activities under the same or similar conditions, and
b
dealt wholly independently with the designated FPE entity.
3
For the purposes of paragraph 15Z1 and this paragraph, any relevant provisions of Chapter 3A of Part 2 of CTA 2009 (UK resident companies: profits of foreign permanent establishments) are to be applied as they would be applied in determining profits attributable to the foreign permanent establishment for corporation tax purposes.
4
But in determining the non-UK allocated equity and liabilities attributable to a foreign permanent establishment of a designated FPE entity which is a member of the relevant group, any assets within sub-paragraph (5) are to be left out.
5
The assets within this sub-paragraph are any assets of the foreign permanent establishment (as otherwise determined under this paragraph) representing an excluded loan relationship.
6
A loan relationship is “excluded” if—
a
the designated FPE entity mentioned in sub-paragraph (4) is the creditor,
b
the debtor (“D”) is a UK resident bank, a building society or a relevant foreign bank—
i
which is a member of the relevant group, and
ii
whose activities include the relevant regulated activity described in the provision mentioned in paragraph 79(a),
c
the money which is the subject of the transaction giving rise to D’s debt is money borrowed by the designated FPE entity mentioned in sub-paragraph (4) from another entity, and
d
in borrowing that money the designated FPE entity was acting as the agent or intermediary of D.
Sch. 19 paras. 15-15Z5 and cross-headings substituted for Sch. 19 paras. 15-23 (with effect in accordance with Sch. 9 para. 35 of the amending Act) by Finance Act 2018 (c. 3), Sch. 9 para. 2