SCHEDULES

Schedule 28AChange in ownership of company with investment business: deductions

Part III Apportionment for purposes of section 768B

7

(1)

Subject to paragraph 8 below, the apportionment required by section 768B(4)(c) shall be made—

F1(a)

in the case of the sums mentioned in paragraph 6(a) above, by apportioning to each accounting period the amounts that would fall to be brought into account in that period as such sums, if it were a period of account for which accounts were drawn up in accordance with generally accepted accounting practice;

(aa)

in the case of the charges mentioned in paragraph 6(b) above, by reference to the time when the charge is due to be paid;

(b)

in the case of the excess mentioned in paragraph 6(c) above, F2or in the case of the non-trading F3deficit mentioned in paragraph 6(dc) above, by apportioning the whole amount of the excess F4or, as the case may be, of the deficit to the first part of the accounting period being divided;

(c)

in the case of the amounts mentioned in paragraph 6(d) F5, (da) and (e) above, by reference to the respective lengths of the parts of the accounting period being divided;

F6(d)

in the case of any such debit as—

(i)

is mentioned in paragraph 6(db) above,

(ii)

falls to be brought into account for the purposes of Chapter II of Part IV of the Finance Act 1996 in accordance with an F7amortised cost basis of accounting, F8. . .

(iii)

so falls to be brought into account otherwise than on the assumption, specified in paragraph 2(2) of Schedule 9 to that Act, that the interest to which it relates does not accrue until it is paid F9, and

(iv)

so falls to be brought into account without any adjustment under paragraph 17 or 18 of that Schedule (debit relating to amount of discount referable to the relevant accounting period to be brought into account instead for the accounting period in which the security is redeemed),

by reference to the time of accrual of the amount to which the debit relates;

(e)

in the case of any such debit as—

(i)

is mentioned in paragraph 6(db) above,

(ii)

falls to be brought into account for the purposes of Chapter II of Part IV of the Finance Act 1996 in accordance with an F7amortised cost basis of accounting, F10. . . F11and

(iii)

so falls to be brought into account—

  • — on the assumption mentioned in paragraph (d)(iii) above, or

  • — with such an adjustment as is mentioned in paragraph (d)(iv) above,

by apportioning the whole amount of the debit to the first part of the accounting period being divided;

(f)

in the case of any such debit as is mentioned in paragraph 6(dd) above, by apportioning the whole amount of the debit to the first part of the accounting period being divided.

F12(g)

in the case of any such credit or debit as is mentioned in paragraph 6(de), by apportioning to each accounting period the credits or debits that would fall to be brought into account in that period if it were a period of account for which accounts were drawn up in accordance with generally accepted accounting practice;

(h)

in the case of any such loss as is mentioned in paragraph 6(df) above, by apportioning the whole amount of the loss to the first part of the accounting period being divided.

(2)

F13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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If it appears that any method of apportionment given by paragraph 7 above would work unreasonably or unjustly for any case for which it is given, such other method shall be used for that case as appears just and reasonable.