SCHEDULES

Section 35

SCHEDULE 15U.K.Tax treatment of financing costs and income

Part 1U.K.Introduction

OverviewU.K.

F11U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 2U.K.Application of this Schedule

Application of ScheduleU.K.

F12U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

UK net debt of the worldwide group for period of account of worldwide groupU.K.

F13U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net debt of a companyU.K.

F14U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Worldwide gross debt of worldwide group for period of account of worldwide groupU.K.

F15U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

References to amounts disclosed in balance sheet of relevant group companyU.K.

F16U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualifying financial services groupsU.K.

F17U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualifying activitiesU.K.

F18U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Lending activities and activities ancillary to lending activitiesU.K.

F19U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Insurance activities and insurance related activitiesU.K.

F110U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Relevant dealing in financial instrumentsU.K.

F111U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

UK trading income of the worldwide groupU.K.

F112U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Worldwide trading income of the worldwide groupU.K.

F113U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Foreign currency accountingU.K.

F114U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 3U.K.Disallowance of deductions

Application of Part and meaning of “total disallowed amount”U.K.

F115U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “company to which this Part applies”U.K.

F116U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appointment of authorised company for relevant period of accountU.K.

F117U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “the reporting body”U.K.

F118U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Statement of allocated disallowances: submissionU.K.

F119U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Statement of allocated disallowances: submission of revised statementU.K.

F120U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Statement of allocated disallowances: requirementsU.K.

F121U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Statement of allocated disallowances: effectU.K.

F122U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Company tax returnsU.K.

F123U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power to make regulations about statement of allocated disallowancesU.K.

F124U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Failure of reporting body to submit statement of allocated disallowancesU.K.

F125U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Powers to make regulations in relation to reductions required under paragraph 25U.K.

F126U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 4U.K.Exemption of financing income

Application of Part and meaning of “total disallowed amount”U.K.

F127U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “company to which this Part applies”U.K.

F128U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appointment of authorised company for relevant period of accountU.K.

F129U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “the reporting body”U.K.

F130U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Statement of allocated exemptions: submissionU.K.

F131U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Statement of allocated exemptions: submission of revised statementU.K.

F132U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Statement of allocated exemptions: requirementsU.K.

F133U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Statement of allocated exemptions: effectU.K.

F134U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Company tax returnsU.K.

F135U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power to make regulations about statement of allocated exemptionsU.K.

F136U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Failure of reporting body to submit statement of allocated exemptionsU.K.

F137U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power to make regulations in relation to reductions required under paragraph 37U.K.

F138U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Balancing payments between group companies: no charge to, or relief from, taxU.K.

F139U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 5U.K.Intra-group financing income where payer denied deduction

Exemption from tax for certain financing income received from certain EEA companiesU.K.

F140U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “relevant associate”U.K.

F141U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “tax-resident” and “EEA territory”U.K.

F142U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualifying EEA tax relief for payment in the current period or a previous periodU.K.

F143U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualifying EEA tax relief for payment in future periodU.K.

F144U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

References to tax of a territoryU.K.

F145U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Financing income amounts of a companyU.K.

F146U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 6U.K.Anti-avoidance

Schemes involving manipulation of rules in Part 2U.K.

F147U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Schemes involving manipulation of rules in Parts 3 and 4U.K.

F148U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “relevant net deduction”U.K.

F149U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of amountsU.K.

F150U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “carried-back amount” and “carried-forward amount”U.K.

F151U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Schemes involving manipulation of rules in Part 5U.K.

F152U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “scheme” and “excluded scheme”U.K.

F153U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 7U.K.“Financing expense amount” and “financing income amount”

The financing expense amounts of a companyU.K.

F154U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The financing income amounts of a companyU.K.

F155U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation of paragraphs 54 and 55U.K.

F156U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Group treasury companiesU.K.

F157U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Real estate investment trustsU.K.

F158U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Companies engaged in oil extraction activitiesU.K.

F159U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Intra-group short-term finance: financing expenseU.K.

F160U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Intra-group short-term finance: financing incomeU.K.

F161U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Short-term loan relationshipsU.K.

F162U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Stranded deficits in non-trading loan relationships: financing expenseU.K.

F163U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Stranded deficits in non-trading loan relationships: financing incomeU.K.

F164U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Stranded management expenses in non-trading loan relationships: financing expenseU.K.

F165U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Stranded management expenses in non-trading loan relationships: financing incomeU.K.

F166U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CharitiesU.K.

F167U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Educational and public bodiesU.K.

F168U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation of paragraphs 57 to 68U.K.

F169U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 8U.K.The “tested expense amount” and “tested income amount”

The tested expense amountU.K.

F170U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The tested income amountU.K.

F171U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Companies with net financing deduction or net financing income that is smallU.K.

F172U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 9U.K.The “available amount”

The available amountU.K.

F173U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Group members with income from oil extraction subject to particular tax treatment in UKU.K.

F174U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Group members with income from shipping subject to particular tax treatment in UKU.K.

F175U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Group members with income from property rental subject to particular tax treatment in UKU.K.

F176U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of accounting expressions used in this PartU.K.

F177U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 10U.K.Other interpretative provisions

The worldwide groupU.K.

F178U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “group”U.K.

F179U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “ultimate parent”U.K.

F180U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “corporate entity”U.K.

F181U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “relevant non-corporate entity”U.K.

F182U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Treatment of entities stapled to corporate entities or relevant non-corporate entitiesU.K.

F183U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Treatment of business combinationsU.K.

F184U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “large” in relation to a groupU.K.

F185U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “UK group company” and “relevant group company”U.K.

F186U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Financial statements of the worldwide groupU.K.

F187U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Non-compliant financial statements of worldwide groupU.K.

F188U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Non-existent financial statements of worldwide groupU.K.

F189U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

References to amounts disclosed in financial statementsU.K.

F190U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Translation of amounts disclosed in financial statements into sterlingU.K.

F191U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Expressions taking their meaning from international accounting standardsU.K.

F192U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “relevant accounting period”U.K.

F193U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “the Commissioners” and “HMRC”U.K.

F194U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 11U.K.Consequential amendments and commencement

Consequential amendmentsU.K.

F195U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F296U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CommencementU.K.

F397U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Anti-avoidance: change of period of account of worldwide groupU.K.

F398U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Transitional provisionU.K.

F399U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .