# Finance Act 2011, Paragraph 15K


(1) This paragraph applies in relation to a UK sub-group if—
(a) at least one member of the UK sub-group is—
(i) a non-UK resident entity, or
(ii) a designated FPE entity, and
(b) the relevant group’s responsible member has not made an entity-by-entity election (see paragraph 15L) in relation to the UK sub-group.
(2) In this Schedule, “residual UK sub-group” means, in relation to a UK sub-group to which this paragraph applies, the group of entities consisting of the members of the UK sub-group which—
(a) are UK resident entities, but
(b) are not designated FPE entities.
(3) The assets, equity and liabilities of the residual UK sub-group are to be determined by reference to the amounts which, if financial statements had been prepared for the residual UK sub-group for the chargeable period under international accounting standards, would have been recognised in those statements.
(4) The amount of the UK-based equity and liabilities of the UK sub-group, as at the end of the chargeable period, is the total amount of—
(a) the equity and liabilities of the residual UK sub-group as at the end of that period, adjusted in accordance with paragraph 15N, and
(b) the adjusted equity and liabilities of each designated FPE entity which is a member of the UK sub-group (see Step 5 in paragraph 15Z1).

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Source: https://www.legislation.gov.uk/ukpga/2011/11/schedule/19/paragraph/15K (the official version)
Page: https://openlegislation.uk/finance-act-2011/schedule-19/paragraph-15K
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.