Finance Act 2011

[F1 Adjustments: general U.K.

Textual Amendments

F1 Sch. 19 paras. 15-15Z5 and cross-headings substituted for Sch. 19 paras. 15-23 (with effect in accordance with Sch. 9 para. 35 of the amending Act) by Finance Act 2018 (c. 3), Sch. 9 para. 2

15M U.K. For the purposes of paragraphs 15N to 15Z, references to a “chargeable UK sub-group or entity” are references to—

(a) in a case to which paragraph 15H or 15L(3) applies, the UK resident entity,

(b) in a case to which paragraph 15J applies, the UK sub-group,

(c) in a case to which paragraph 15K applies, the residual UK sub-group, or

(d) in a case to which paragraph 15Z1 applies, the designated FPE entity.

15N (1) To adjust the amount of the equity and liabilities of a chargeable UK sub-group or entity for the purposes of paragraph 15H(2)(b), 15J(3)(b), 15K(4)(a), 15L(3)(b) or Step 3 in paragraph 15Z1, take the following steps— U.K.

• Step 1

  Take the amount of the equity and liabilities of the chargeable UK sub-group or entity, other than excluded equity and liabilities, as at the end of the chargeable period.

• Step 2

  Adjust that amount in accordance with paragraphs 15O to 15U (so far as applicable).

• Step 3

  If paragraph 15X (loss absorbing instruments issued by overseas subsidiaries) applies in relation to the chargeable UK sub-group or entity, reduce the adjusted amount (but not below nil) by the amount determined under that paragraph (subject to sub-paragraph (2)).

• Step 4

  Subject to sub-paragraph (2), reduce the amount given by Step 3 (but not below nil) by—

  (a)

  the amount of the chargeable UK sub-group or entity’s high quality liquid assets as at the end of that period, other than—

  (i)

  any asset which, for the purposes of an adjustment at Step 2, is an asset to which paragraph 15U(1) applies;

  (ii)

  any asset which is taken into account in determining the amount of a reduction under paragraph 15X for the purposes of Step 3;

  (iii)

  in a case where the bank levy is charged as provided for by paragraph 4 (groups) and a relevant foreign bank is a member of the relevant group, any asset which for the purposes of Step 3 of paragraph 24(1) is an asset to which paragraph 27D(1) applies; and

  (b)

  if paragraph 15Z (high quality liquid assets) applies, the amount determined under that paragraph.

(2) Where any amount (“A”) within Step 3, or within paragraph (a) or (b) of Step 4, is used to reduce short term liabilities, the amount of the reduction is determined as if A were an amount equal to half of A.]