Finance Act 2019

Recalculation: steps

50 (1) This paragraph applies for the purposes of recalculating the transferred adjusted ring fence profits amount for the pre-acquisition accounting period mentioned in paragraph 26(1) (for the purposes of paragraph 26(2)(c)).

(2) The recalculated transferred adjusted ring fence profits amount for the period is the aggregate of—

(a) the reduced ARFP amount for the pre-acquisition period (see paragraphs 51 and 52), and

(b) the adjusted finance cost amount for the loss period mentioned in paragraph 26(1) (see paragraph 55).

(3) But if the amount given by taking the steps in sub-paragraph (2) is a negative amount, the recalculated transferred adjusted ring fence profits amount is nil.