Taxation (International and Other Provisions) Act 2010

[F1 Statement of allocated interest restrictions U.K.

Textual Amendments

F1 Sch. 7A inserted (with effect in accordance with Sch. 5 para. 25(1)(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 2 (with Sch. 5 para. 28)

22 (1) The statement of allocated interest restrictions required by paragraph 20(3)(e) to be included in a full interest restriction return must— U.K.

(a) list one or more companies that—

(i) were UK group companies at any time during the return period, and

(ii) had net tax-interest expense for the period,

(b) in relation to each company listed under paragraph (a), specify an amount, and

(c) show the total of the amounts specified under paragraph (b).

(2) The amount specified under sub-paragraph (1)(b) in relation to a company is referred to in this Part of this Act as the “allocated disallowance” of the company for the return period.

(3) The allocated disallowance of a company for the return period—

(a) must not exceed the net tax-interest expense of the company for the return period,

(b) where the company is a non-consenting company in relation to the return, must not exceed the company's pro-rata share of the total disallowed amount (see paragraph 23), and

(c) must not be a negative amount.

(4) The sum of the allocated disallowances for the return period of the companies listed in the statement must equal the total disallowed amount.

(5) The statement must also specify an amount in relation to each relevant accounting period of each company listed in the statement.

(6) The amount specified under sub-paragraph (5) in relation to an accounting period of a company is referred to in this Part of this Act as the “allocated disallowance” of the company for the accounting period.

(7) In the case of a company that has only one relevant accounting period, the allocated disallowance of the company for that accounting period must be equal to the allocated disallowance of the company for the return period.

(8) In the case of a company that has more than one relevant accounting period, the allocated disallowance of the company for any of those accounting periods—

(a) must not exceed so much of the net tax-interest expense of the company for the return period as is referable to the accounting period,

(b) where the company is a non-consenting company in relation to the return, must not exceed the accounting period's pro-rata share of the total disallowed amount (see paragraph 24), and

(c) must not be a negative amount.

(9) The sum of the allocated disallowances of the company for its relevant accounting periods must be equal to the allocated disallowance of the company for the return period.]