Corporation Tax Act 2010 section 938F

Meaning of references to economic profits and losses

Section 938F defines how economic profits and losses are to be computed for the purposes of the group mismatch scheme rules, and clarifies that they are measured on a collective, group-wide basis.

• Economic profits and losses must take into account profits and losses arising under the Corporation Tax Acts, together with any adjustments needed to reflect the time value of money.
• An economic profit or loss of the "scheme group" over the "scheme period" means the combined profit or loss of all members of that group taken together during that period.
• Only profits and losses attributable to times when a particular group member is actually a party to the scheme are included in the calculation.
• The effect is to prevent a company's results from periods before it joined, or after it left, the scheme from distorting the group-wide economic profit or loss figure.