C1C3C2F1Part 10F1Corporate interest restriction
Pt. 10 excluded by 2010 c. 4, s. 937NA (as 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. 7)
Pt. 10 excluded by 2010 c. 4, s. 938V(d) (as substituted (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. 9)
Pt. 10 excluded by 2010 c. 4, s. 938N(e) (as substituted (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. 8)
F1CHAPTER 2F1Disallowance and reactivation of tax-interest expense amounts
376F1Disallowance of deductions: no return, or non-compliant return, submitted
1
This section applies where—
a
a worldwide group is subject to interest restrictions in a period of account of the group (“the relevant period of account”),
b
the relevant date has passed, and
c
condition A, B or C is met.
2
In this section “the relevant date” means—
a
where the appointment of a reporting company has effect in relation to the relevant period of account, the filing date in relation to the period (see paragraph 7(5) of Schedule 7A);
b
otherwise, the last day of the period of 12 months beginning with the end of the relevant period of account.
3
Condition A is that no appointment of a reporting company has effect in relation to the relevant period of account.
4
Condition B is that—
a
the appointment of a reporting company has effect in relation to the relevant period of account, and
b
no interest restriction return has been submitted for the period.
5
Condition C is that—
a
the appointment of a reporting company has effect in relation to the relevant period of account,
b
an interest restriction return has been submitted for the period, and
c
the return does not comply with the requirements of paragraph 20(3) of Schedule 7A (for example by including inaccurate figures).
6
A relevant company must, in any accounting period to which paragraph 24 of Schedule 7A allocates a pro-rata share of the total disallowed amount that is not nil, leave out of account tax-interest expense amounts that, in total, equal that pro-rata share.
7
See section 377 for provision as to which tax-interest expense amounts are to be left out of account as a result of this section.
8
In this section “relevant company” means a company that was a member of the worldwide group at any time during the relevant period of account.
Pt. 10: the existing Pt. 10 renumbered as Pt. 11 (except for ss. 375, 376 which are repealed), the existing ss. 372-374, 377-382 renumbered as ss. 499-507 and a new Pt. 10 (ss. 372-498) inserted (with effect in accordance with Sch. 5 para. 25(1)-(3) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 1, 10(1)(2)(a)(3) (with Sch. 5 paras. 27, 32-34)