Regulation 6 Determining assets and UK assets

(1)

This regulation applies to determine the assets and the UK assets of the relevant group or relevant entity.

(2)

In the case of the relevant group, the amount of the assets and the UK assets are determined by reference to—

(a)

the amounts recognised in the group’s consolidated financial statements for the chargeable period as prepared under international accounting standards or UK GAAP, or

(b)

if no such financial statements are prepared, the amounts which would have been so recognised had consolidated financial statements for the group been prepared for the chargeable period under international accounting standards.

(3)

In the case of the relevant entity, assets and UK assets are determined by reference to—

(a)

the amounts recognised in the entity’s financial statements for the chargeable period as prepared under international accounting standards or UK GAAP, or

(b)

if no such financial statements are prepared, the amounts which would have been so recognised had such financial statements been prepared for the chargeable period under international accounting standards or under UK GAAP if that is what the entity prepares its financial statements under.

(4)

For the purposes of these Regulations, “UK assets” means—

(a)

in relation to the relevant group—

(i)

the assets of any relevant UK sub-group which is a member of the relevant group,

(ii)

the assets of any UK resident entity which is a member of the relevant group but is not a member of a relevant UK sub-group,

(iii)

the assets of a non-UK resident entity which is a member of the relevant group and is a member of a UK sub-group but is not a member of a relevant UK sub-group, and

(iv)

the assets of any permanent establishment through which any member of the relevant group carries on a trade in the UK; and

(b)

in relation to the relevant entity, the assets of any permanent establishment through which the entity carries on a trade in the UK.

(5)

Paragraph 26 (including sub-paragraph (4)) of Schedule 19 to the Finance Act 2011 applies for the purposes of determining the assets of a permanent establishment.