46(1)This paragraph applies for calculating the “trading income of the group” for the relevant period for the purposes of paragraph 45.U.K.
(2)The trading income for the group for the relevant period is the aggregate of—
(a)the gross income calculated in accordance with sub-paragraph (3), and
(b)the net income calculated in accordance with sub-paragraph (4).
(3)The income referred to in sub-paragraph (2)(a) is the gross income—
(a)arising from the activities of the group (other than net-basis activities), and
(b)disclosed as such in the financial statements of the group,
without taking account of any deductions (whether for expenses or otherwise).
(4)The income referred to in sub-paragraph (2)(b) is the net income arising from the net-basis activities of the group that—
(a)is accounted for as such under international accounting standards or in accordance with practice which is generally accepted accounting practice in the territory in which the principal company of the group is resident, or
(b)would be accounted for as such if income arising from such activities were accounted for under such standards or in accordance with such practice.
(5)In this paragraph “net-basis activities” means activities normally reported on a net basis in financial statements prepared in accordance with such standards or practice.