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 6Tax-EBITDA
407Amounts not brought into account in determining a company's tax-EBITDA
1
An amount is an excluded amount for the purposes of conditions A and B in section 406 if it is any of the following—
a
a tax-interest expense amount or a tax-interest income amount F2(or an amount which would, apart from section 388, be a tax-interest income amount);
b
an allowance or charge under CAA 2001;
c
an excluded relevant intangibles debit or an excluded relevant intangibles credit (see section 408);
d
a loss that—
i
is made by the company in an accounting period other than that mentioned in section 406(2), and
ii
is not an allowable loss for the purposes of TCGA 1992;
e
a deficit from the company's loan relationships for an accounting period other than that mentioned in section 406(2);
f
expenses of management of the company that are referable to an accounting period other than that mentioned in section 406(2);
g
a deduction under section 137 of CTA 2010 (group relief) or section 188CK of that Act (group relief for carried-forward losses) if and to the extent that it constitutes a loss of the worldwide group;
F3ga
a reduction under paragraph 37(3)(b) of Schedule 5 to FA 2019 (non-UK resident companies carrying on UK property businesses etc: unrelieved amounts);
h
a qualifying tax relief.
2
For the purposes of subsection (1)(g) the deduction constitutes a “loss of the worldwide group” if and to the extent that it comprises surrenderable amounts that are referable to times at which the surrendering company was a member of the worldwide group.
3
An amount is a qualifying tax relief for the purposes of subsection (1)(h) if it is any of the following—
a
an R&D expenditure credit F4under Chapter 1A of Part 13 of CTA 2009;
b
a deduction under section 1044, 1063, 1068 or 1087 of CTA 2009 (additional relief for expenditure on research and development);
c
an amount which is treated as a trading loss as a result of section 1092 of CTA 2009 (SMEs: deemed trading loss for pre-trading expenditure);
d
a deduction under section 1147 or 1149 of CTA 2009 (relief for expenditure on contaminated or derelict land);
e
a deduction under section 1199 of CTA 2009 (film tax relief);
f
a deduction under section 1216CF of CTA 2009 (television tax relief);
g
a deduction under section 1217CF of CTA 2009 (video games tax relief);
h
a deduction under section 1217H of CTA 2009 (relief in relation to theatrical productions);
i
a deduction under section 1217RD of CTA 2009 (orchestra tax relief);
j
a deduction under section 1218ZCE of CTA 2009 (museums and galleries exhibition tax relief);
k
a qualifying charitable donation (whether made in the accounting period mentioned in section 406(2) or an earlier one);
l
a deduction under section 357A of CTA 2010 (profits from patents etc chargeable at lower rate of corporation tax).
4
An amount is an excluded amount for the purposes of condition B in section 406 if it is an allowable loss for the purposes of TCGA 1992.
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)