Part 7Tax treatment of financing costs and income

CHAPTER 2Application of Part

272Worldwide trading income of the worldwide group

1

This section applies in relation to section 266 for calculating the worldwide trading income of the worldwide group for a period of account.

2

The trading income for that period of the worldwide group is the aggregate of—

a

the gross income calculated in accordance with subsection (3), and

b

the net income calculated in accordance with subsection (4).

3

The income mentioned in subsection (2)(a) is the gross income—

a

arising from the activities of the worldwide group (other than net-basis activities), and

b

disclosed as such in the financial statements of the worldwide group,

without taking account of any deductions (whether for expenses or otherwise).

4

The income mentioned in subsection (2)(b) is the net income arising from the net-basis activities of the worldwide group that—

a

is accounted for as such under international accounting standards, or

b

would be accounted for as such if income arising from such activities were accounted for under international accounting standards.

5

In this section “net-basis activity” means activity that is normally reported on a net basis in financial statements prepared in accordance with international accounting standards.

6

For provision about references in this Part to financial statements of the worldwide group, and amounts disclosed in financial statements, see sections 346 to 349.