Schedules
Schedule 3Corporate interest restriction etc.
Part 1Amendments to TIOPA 2010
13Interest allowance (non-consolidated investment) election: “non-consolidated associate”
1
Section 429 (meaning of “non-consolidated associate”) is amended as follows.
2
In subsection (1), for “or C” substitute “, C or D”
.
3
In subsection (2), in the words before paragraph (a), for “the entity” substitute “the ultimate parent’s interest in the entity”
.
4
After subsection (4) insert—
4A
Condition D is that—
a
the entity is—
i
a partnership, or
ii
a transparent entity (other than a partnership), and
b
the ultimate parent’s interest in the entity is accounted for in the financial statements of the group for the relevant period of account on the basis of fair value accounting.
5
For subsection (6) substitute—
6
For the purposes of this section—
a
“entity” includes anything which may be treated as an entity for accounting purposes (regardless of whether it has a legal personality as a body corporate);
b
an entity is “transparent” if—
i
it is not chargeable to corporation tax or income tax as a person (ignoring any exemptions), or
ii
it is a collective investment vehicle which is “transparent for income tax purposes” for the purposes of paragraph 8 of Schedule 5AAA to TCGA 1992 (see paragraph 8(7) of that Schedule).