Finance Act 2011

43 (1) This paragraph applies if— U.K.

(a) the relevant group is a foreign banking group or a relevant non-banking group,

(b) a member of the relevant group has an interest (“ the relevant interest ”) in a joint venture for the purposes of those provisions of the applicable accounting standards which relate to joint ventures,

(c) the amounts recognised in the relevant consolidated financial statements include amounts representing the liabilities (“the JV liabilities”) of the joint venture so far as determined by the relevant interest, [F1 and

(d) in the absence of this paragraph, none of the liabilities taken into account in determining the amount of the chargeable equity and liabilities of the relevant group would include the JV liabilities.]

(e) none of the liabilities of a relevant UK sub-group, a relevant UK banking sub-group or any entity for the purposes of (as the case may be) paragraph 17(6)(a) or (12)(a), 19(6)(a) or (12)(a) or 27(2)(a) include the JV liabilities.

[F2 (2) For the purposes of determining the chargeable equity and liabilities of the relevant group under paragraph 17 or 19 (as the case may be) the joint venture is to be treated as if—

(a) it were a member of the group in relation to—

(i) the liabilities of the joint venture which consist of the JV liabilities, and

(ii) the assets of the joint venture so far as determined by the relevant interest, and

(b) it were not a member of the group in relation to the remaining liabilities and assets of the joint venture.]

(3) In this paragraph references to the amounts recognised in the relevant consolidated financial statements are to—

(a) the amounts recognised in the relevant group's consolidated financial statements for the chargeable period as prepared under the applicable accounting standards, or

(b) if no such financial statements are prepared, the amounts which would have been so recognised had consolidated financial statements for the relevant group been prepared for the chargeable period under international accounting standards.

(4) “ The applicable accounting standards ” means—

(a) international accounting standards, or

(b) US GAAP if the members of the relevant group are determined under paragraph 4(7).

Textual Amendments

F1 Sch. 19 para. 43(1)(d) and word substituted for Sch. 19 para. 43(1)(d) (with effect in accordance with Sch. 34 para. 10 of the amending Act) by Finance Act 2012 (c. 14), Sch. 34 para. 8(2) (with Sch. 34 para. 12)

F2 Sch. 19 para. 43(2) substituted (with effect in accordance with Sch. 34 para. 10 of the amending Act) by Finance Act 2012 (c. 14) , Sch. 34 para. 8(3) (with Sch. 34 para. 12 )