Taxation (International and Other Provisions) Act 2010

[F1 Net tax-interest expense U.K.

Textual Amendments

F1 Pt. 10: the existing Pt. 10 renumbered as Pt. 11 (except for ss. 375, 376 which are repealed), the existing ss. 372-374, 377-382 renumbered as ss. 499-507 and a new Pt. 10 (ss. 372-498) inserted (with effect in accordance with Sch. 5 para. 25(1)-(3) of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)

389 The “net tax-interest expense” or “net tax-interest income” of a company U.K.

(1) A company has “net tax-interest expense” for a period of account of a worldwide group if the total of its tax-interest expense amounts for the period exceeds the total of its tax-interest income amounts for the period.

(2) The amount of the net tax-interest expense of the company for the period is the amount of the excess.

(3) A company has “net tax-interest income” for a period of account of a worldwide group if the total of its tax-interest income amounts for the period exceeds the total of its tax-interest expense amounts for the period.

(4) The amount of the net tax-interest income of the company for the period is the amount of the excess.

(5) The net tax-interest expense or net tax-interest income of a company for a period of account of a worldwide group is “referable” to an accounting period of the company to the extent that it comprises tax-interest expense amounts or tax-interest income amounts that are (or apart from this Part would be) brought into account in the accounting period.

(6) This section applies for the purposes of this Part.

390 The worldwide group's aggregate net tax-interest expense and income U.K.

(1) The “aggregate net tax-interest expense” of a worldwide group for a period of account of the group is (subject to subsection (2))—

(a) the total of the net tax-interest expense for the period of each relevant company that has such an amount, less

(b) the total of the net tax-interest income for the period of each relevant company that has such an amount.

(2) Where the amount determined under subsection (1) is negative, the “aggregate net tax-interest expense” of the group for the period is nil.

(3) The “aggregate net tax-interest income” of a worldwide group for a period of account of the group is (subject to subsection (4))—

(a) the total of the net tax-interest income for the period of each relevant company that has such an amount, less

(b) the total of the net tax-interest expense for the period of each relevant company that has such an amount.

(4) Where the amount determined under subsection (3) is negative, the “aggregate net tax-interest income” of the group for the period is nil.

(5) In this section “relevant company” means a company that was a member of the group at any time during the period of account of the group.

(6) This section applies for the purposes of this Part.]