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This guidance applies to worldwide group periods of account ending before or straddling 1 April 2017.

Balance sheets for UK permanent establishments that are relevant group companies

Where a foreign company carries on a trade in the UK through a permanent establishment, the permanent establishment will be a relevant group company if the foreign company satisfies the same conditions that a UK company does in terms of ownership by the group (see CFM90240).

»Ê¹ÚÌåÓýapp same rules regarding the start and end dates for establishing the net debt of a relevant group company for a period of account of the worldwide group apply to a UK permanent establishment. Where the foreign company prepares a separate balance sheet for the UK permanent establishment, the figures of net debt are derived from that balance sheet (TIOPA10/S265 (3)).

Where the UK permanent establishment does not have a separate balance sheet, the figures of net debt at the start date and end date for a period of account of the permanent establishment are taken as the amounts that would be disclosed in a balance sheet of the permanent establishment if one were prepared in accordance with GAAP. This means prepared in accordance with either UK GAAP or IAS. »Ê¹ÚÌåÓýapp company is not required to actually prepare a full audited balance sheet; it only needs to consider what the amounts of relevant liabilities (see CFM90710) and relevant assets (see CFM90720) would be at the start and end of the accounting period were a balance sheet prepared.