Schedule 15
Finance Bill
5:15 pm
Worldwide trading income of the worldwide group
6G (1) This paragraph applies in relation to paragraph 6A for calculating the worldwide trading income of the worldwide group for a period of account.
(2) The trading income for that period of the worldwide group is the aggregate of—
(a) the gross income calculated in accordance with sub-paragraph (3), and
(b) the net income calculated in accordance with sub-paragraph (4).
(3) The income referred to in sub-paragraph (2)(a) the gross income—
(a) arising from the activities of worldwide group (other than net-basis activities), and
(b) disclosed as such in the financial statements of the worldwide group,
without taking account of any deductions (whether for expenses or otherwise).
(4) The income referred to in sub-paragraph (2)(b) is the net income arising from the net-basis activities of the worldwide group that—
(a) is accounted for as such under international accounting standards, or
(b) would be accounted for as such if income arising from such activities were accounted for under international accounting standards.
(5) In this paragraph “net-basis activity” means activity that is normally reported on a net basis in financial statements prepared in accordance with international accounting standards.
(6) For provision about references in this Schedule to financial statements of the worldwide group, and amounts disclosed in financial statements, see paragraphs 69 to 72.’.
111, in schedule 15, page 152, line 39, after first ‘currency’ insert ‘(“the relevant foreign currency”)’.
112, in schedule 15, page 152, line 40, after ‘applies’ insert ‘—
(a) ’.
113, in schedule 15, page 152, line 42, leave out from ‘the’ to end of line 43 and insert ‘relevant foreign currency, and—
(b) for the purposes of determining under paragraph 3 the net debt amount of a company, the reference in sub-paragraph (3) of that paragraph to £3 million is to be read as a reference to the relevant amount.
(4) For this purpose “the relevant amount” means the average of—
(a) £3 million expressed in the relevant foreign currency, translated by reference to the spot rate of exchange for the company’s start date, and
(b) £3 million expressed in the relevant foreign currency, translated by reference to the spot rate of exchange for the company’s end date.’—(Mr. Timms.)