40(1)Section 543 (financing cost ratio) is amended as follows.U.K.
(2)In subsection (1) after “period” insert “ (unless it is nil or a negative amount) ”.
(3)For subsection (3) substitute—
“(3)The excess is charged to corporation tax in relation to the accounting period under the charge to corporation tax on income.
(3A)“The excess” means—
(a)the amount equal to—
(i)PFC, minus
(ii)the property financing costs which would cause the calculation in subsection (2) to equal 1.25 for the accounting period, or
(b)if less, the amount equal to 20% of PP.”
41(1)Section 544 (meaning of “property financing costs” etc) is amended as follows.U.K.
(2)In subsection (5) for “include” and paragraphs (a) to (e) substitute “are—
(a)interest payable on borrowing,
(b)amortisation of discounts relating to borrowing,
(c)amortisation of premiums relating to borrowing,
(d)the financing expense implicit in payments made under finance leases, and
(e)alternative finance return (as defined in sections 511 to 513 of CTA 2009).”
(3)After subsection (5) insert—
“(6)The Treasury may by regulations amend the list of matters in subsection (5) by inserting, omitting or amending a description of a matter.”
42U.K.The amendments made by paragraphs 40 and 41 have effect for accounting periods beginning on or after the day on which this Act is passed.