SCHEDULES

SCHEDULE 5Financing costs and income of group companies

Amendments of Chapter 2 (application of Part)

7After section 265 insert—

“265ADifferent accounting treatment used at company and group levels

(1)This section applies where—

(a)for the purposes of the computation of the UK net debt of the worldwide group, the amount of a relevant liability of a company (“the company-level relevant liability”) is determined in accordance with section 263,

(b)for the purposes of the computation of the worldwide gross debt of the group, the amount of a relevant liability of the worldwide group (“the group-level relevant liability”) is determined in accordance with section 264,

(c)the company-level relevant liability is an amount in respect of the same matter as—

(i)the group-level relevant liability, or

(ii)a liability comprised in the group-level relevant liability, and

(d)the amount of the company-level relevant liability would not, apart from this section, be the same as the amount of the liability mentioned in paragraph (c)(i) or (ii).

(2)For the purposes of the computation mentioned in subsection (1)(a), the amount of the company-level relevant liability is the amount of the liability mentioned in subsection (1)(c)(i) or (ii).”