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HMRC internal manual

Corporate Finance Manual

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HM Revenue & Customs
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Debt cap: the available amount: definition of the available amount

The amounts to include in the available amount

The definition of the ‘available amount’ is in TIOPA2010/ 7/S332, and it is the sum of certain amounts disclosed in the financial statements of the group for the period of account of the worldwide group. See CFM92430 for the amounts included in the available amount.

These will be amounts in the consolidated financial statements of the worldwide group. So, in accordance with International Accounting Standard 27: Consolidated and Separate Financial Statements, under the consolidation procedures:

  • intra-group balances;
  • intra-group transactions; and
  • intra group income and expenses

will be eliminated in full. This means that the available amount should not take account of any of the intra-group financing amounts paid or due to other members of the worldwide group.

Therefore the available amount represents, essentially, the external financing costs of the worldwide group.

TIOPA10/S 336 confirms that expressions, such as ‘disclosed’, have the meaning given by international accounting standards.

Deriving amounts from consolidated accounts

In most cases, it will be necessary for a group to subject the figures on the face of consolidated financial statements to some analysis in order to compute the available amount. TIOPA10/S349(1) explicitly extends references to ‘amounts disclosed in financial statements’ to include particular sums comprised within those amounts. There is further guidance on this at CFM90470.