Taxation (International and Other Provisions) Act 2010 section 442

Amounts of qualifying infrastructure company left out of account for other purposes

Section 442 explains how a qualifying infrastructure company's exempt amounts are excluded from the worldwide group's key interest restriction calculations for the relevant period.

• The section applies where a company qualifies as an infrastructure company throughout an entire relevant accounting period.
• When calculating the group's adjusted net group-interest expense or qualifying net group-interest expense, any exempt amounts of the infrastructure company (such as exempt third-party interest and amounts relating to loans made to infrastructure companies that are disregarded) must be left out of account.
• The group's EBITDA for the period of account must be calculated as if the worldwide group did not include the qualifying infrastructure company for that relevant accounting period.
• The overall effect is that the qualifying infrastructure company's financial activity is ring-fenced and removed from the group-level interest restriction computations.