(1)This section applies where—
(a)a member of the worldwide group is a member of a partnership at any time during a period of account of the worldwide group, and
(b)during the period of account, the partnership incurs expenses in relation to finance leases or debt factoring (“the relevant partnership expenses”).
(2)For the purposes mentioned in subsection (5), the financial statements of the worldwide group for the period of account are to be treated as if—
(a)they did not disclose any of the relevant partnership expenses, and
(b)they disclosed instead such amounts as would have fallen within section 332(1)(e) or (f), had the financial statements been prepared on the following assumption.
(3)The assumption is that, during the period of account, each member of the partnership incurred the appropriate proportion of the relevant partnership expenses.
(4) In subsection (3) “ the appropriate proportion ”, in relation to a member of the partnership, is the proportion of the partnership's profits to which the member is entitled, over the period of account of the worldwide group, under the partnership's profit sharing arrangements.
(5)The purposes referred to in subsection (2) are the purposes of—
(a)this Chapter, and
(b)any other provision of the Corporation Tax Acts so far as it applies for the purposes of this Chapter.]
Textual Amendments
F1Ss. 332A-332C inserted (retrospectively) by Finance (No. 3) Act 2010 (c. 33), Sch. 5 paras. 27, 36(1)