Finance Act 2022

Application of corporate interest restriction rules (consolidation of QAHC stacks)

43(1)Sub-paragraph (2) applies where—

(a)a QAHC (“P”) would not, apart from that sub-paragraph, be a member of a multi-company worldwide group,

(b)P has a wholly-owned subsidiary (“W”) which it does not hold as a market value investment,

(c)W is a QAHC, and

(d)P is either—

(i)not a wholly-owned subsidiary of another QAHC, or

(ii)is such a subsidiary but is held as a market value investment.

(2)For the purposes of Part 10 of TIOPA 2010, paragraph 42 and this paragraph—

(a)P is the ultimate parent of a worldwide group, and

(b)W, and any consolidated subsidiary of W—

(i)is a member of that group and not of any other worldwide group, and

(ii)is a consolidated subsidiary of P.

(3)Sub-paragraph (4) applies where—

(a)a QAHC (“M”) is a member of a multi-company worldwide group (“G”) (including as a result of the application of sub-paragraph (2) or the previous application of this sub-paragraph),

(b)M has a wholly-owned subsidiary (“N”) which it does not hold as a market value investment,

(c)N is a QAHC, and

(d)apart from that sub-paragraph, N would not be a member of G.

(4)For the purposes of Part 10 of TIOPA 2010, paragraph 42 and this paragraph, N, and any consolidated subsidiary of N—

(a)is a member of G and not of any other worldwide group, and

(b)is a consolidated subsidiary of M and any other member of G in relation to which M is a consolidated subsidiary.