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SCHEDULES

SCHEDULE 11Corporate interest restriction

Adjusted net group-interest expense: capitalised interest

6(1)Section 413 (adjusted net group-interest expense) is amended as follows.

(2)In subsection (3)—

(a)in paragraph (a), for “an asset or liability” substitute “a non-financial asset or non-financial liability”, and

(b)in paragraph (b), after “an amount that” insert “, in the case of a non-financial asset,”.

(3)In subsection (4)—

(a)in paragraph (a), for “an asset or liability” substitute “a non-financial asset or non-financial liability”, and

(b)in paragraph (b), after “an amount that” insert “, in the case of a non-financial asset,”.

(4)For subsection (5) substitute—

(5)For the purposes of subsections (3)(a) and (b) and (4)(a) and (b)—

(a)an asset is a “non-financial asset” if it is not a financial asset for accounting purposes or it is a share in a company,

(b)a liability is a “non-financial liability” if it is not a financial liability for accounting purposes or it is in respect of a share issued by a company, and

(c)references to amounts brought into account in determining the carrying value of a non-financial asset or non-financial liability do not include amounts so brought into account as a result of writing off any part of an amount which was itself so brought into account;

and in paragraphs (a) and (b) “share” has the meaning given by section 476(1) of CTA 2009.