Article 7 Amendment of the Income and Corporation Taxes Act 1988

Amend section 432E (section 432B apportionment: participating funds)^f1 as follows.

In subsection (3)(a) after “the category of business concerned” insert “(but taking that mean to be nil if it would otherwise be below nil)”.

In subsection (4) for “For” substitute “Subject to subsection (4A) below, for”.

After subsection (4) insert—

“(4A)

If the mean of the opening and closing liabilities of the relevant business reduced by the opening and closing values of any assets of the relevant business which are linked assets is nil then, for the purposes of subsection (3) above, “the applicable percentage” is such percentage as is just and reasonable.”.