# Finance Act 2011, Paragraph 15Z4


(1) In determining the amount of E’s assets at Step 1 in paragraph 15Z1, the amount of E’s net settlement assets is to be reduced (but not below nil) by the amount of E’s net settlement liabilities.
(2) In determining the amount of the foreign permanent establishment’s assets at Step 2 in paragraph 15Z1—
(a) the reduction in E’s assets under sub-paragraph (1) is to be ignored, but
(b) the amount of the foreign permanent establishment’s net settlement assets is to be reduced by Z%.
(3) For this purpose, “Z%” is the proportion by which E’s net settlement assets are reduced under sub-paragraph (1).
(4) E’s “net settlement liabilities” are E’s liabilities so far as they—
(a) are covered by the provision mentioned in paragraph 15Z3(1)(c), and
(b) are not excluded liabilities.
(5) E’s “net settlement assets” are E’s assets so far as corresponding to N’s net settlement liabilities.
(6) “N’s net settlement liabilities” means N’s liabilities so far as they are covered by the provision mentioned in sub-paragraph 15Z3(1)(c).
(7) The permanent establishment’s “net settlement assets” are its assets so far as they are part of E’s net settlement assets.

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Source: https://www.legislation.gov.uk/ukpga/2011/11/schedule/19/paragraph/15Z4 (the official version)
Page: https://openlegislation.uk/finance-act-2011/schedule-19/paragraph-15Z4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.