Taxation (International and Other Provisions) Act 2010 section 13

Group ratio election

Section 13 allows the reporting company of a worldwide group to elect that the group's interest allowance be calculated using the group ratio method instead of the default method.

• The reporting company may elect to use the group ratio method for calculating the group's interest allowance
• A previous group ratio election may be revoked by the reporting company
• An election or revocation applies to the specific period of account for which it is made
• The practical effect of making a group ratio election is set out in section 396 of the Act