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.