12(1)Section 423 (capitalised interest brought into account for tax purposes in accordance with GAAP) is amended as follows.
(2)After subsection (2A) insert—
“(2AA)Section 413 has effect, in the case of a GAAP-taxable asset within subsection (2AB), as if—
(a)the definition of “upward adjustment” included so much of its carrying value as is attributable to a relevant expense amount (whether or not that amount is brought into account in the group’s financial statements for the relevant period of account); and
(b)the definition of “downward adjustment” included so much of its carrying value as is attributable to a relevant income amount (whether or not that amount is brought into account in the group’s financial statements for the relevant period of account).
(2AB)A GAAP-taxable asset is within this subsection if it is (or, under section 173 of TCGA 1992, is treated as being) appropriated, in a relevant accounting period in relation to a period of account, from trading stock to fixed assets.”
(3)In subsection (3), for “(2)(b) and (2A)” substitute “(2)(b), (2A) and (2AA)”.