Taxation (International and Other Provisions) Act 2010 (c. 8)

SCHEDULES

[F1 SCHEDULE 7A U.K. Interest restriction returns

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)

PART 2 U.K. Contents of interest restriction return

“Amount available for reactivation” of company in period of account of group U.K.

26 (1) This paragraph applies for the purposes of this Part of this Act. U.K.

(2) The “amount available for reactivation” of a company in a period of account of a worldwide group (“the relevant worldwide group”) is—

(a) the amount determined under sub-paragraph (3), or

(b) if lower, the company's interest reactivation cap (see sub-paragraph (5)).

(3) The amount referred to in sub-paragraph (2)(a) is—

where—

A is the total of the disallowed tax-interest expense amounts (if any) that are brought forward to the specified accounting period from earlier accounting periods;

B is the total of the tax-interest expense amounts (if any) that the company is required to leave out of account in the specified accounting period as a result of the operation of this Part of this Act in relation to a period of account of the worldwide group before the period of account;

C is the total of the disallowed tax-interest expense amounts (if any) that the company is required to bring into account in the specified accounting period as a result of the operation of this Part of this Act in relation to a period of account of the worldwide group before the period of account;

D is the total of the tax-interest expense amounts (if any) that the company is required to leave out of account in the specified accounting period as a result of the operation of this Part of this Act in relation to a period of account of a worldwide group of which the company was a member before it became a member of the relevant worldwide group;

E is the total of the disallowed tax-interest expense amounts (if any) that the company is required to bring into account in the specified accounting period as a result of the operation of this Part of this Act in relation to a period of account of a worldwide group of which the company was a member before it became a member of the relevant worldwide group.

(4) In sub-paragraph (3) “the specified accounting period” means—

(a) the earliest relevant accounting period of the company, or

(b) where the company became a member of the relevant worldwide group during the period of account, the earliest relevant accounting period of the company in which it was a member of the group.

(5) For the purposes of sub-paragraph (2)(b) “the interest reactivation cap” of the company is—

where—

A is the interest reactivation cap of the worldwide group in the period of account;

B is the proportion of the period of account in which the company is a UK group company.]