Finance Act 2021

Miscellaneous corporation tax measures

36 Hybrid and other mismatches

Schedule 7 makes amendments to Part 6A of TIOPA 2010 (hybrid and other mismatches).

37 Relief for losses etc

Schedule 8 makes provision about corporation tax relief for losses and other amounts.

38 Corporate interest restriction: minor amendments

(1) Part 10 of TIOPA 2010 (corporate interest restriction) is amended as follows.

(2) In section 452 (Real Estate Investment Trusts), after subsection (2) insert—

“(2A) In applying subsection (2) and giving effect to the remainder of this section, the company is treated, at all times in the accounting period, as carrying on a residual business within the charge to corporation tax (and, accordingly, amounts falling to be brought into account in the accounting period as a result of this section are within the charge to corporation tax).”

(3) The amendment made by subsection (2) is treated as having come into force on 21 July 2020.

(4) In Schedule 7A (interest restriction returns), after paragraph 29 insert—

“29A (1) Liability to a penalty under paragraph 29 does not arise if the company has a reasonable excuse for failing to submit the return by the filing date.

(2) If the company has a reasonable excuse for the failure but the excuse has ceased, the company is to be treated as having continued to have the excuse if the return is submitted without unreasonable delay after the excuse ceased.”

(5) That Schedule has effect, and is to be deemed always to have had effect, with the amendment made by subsection (4).

39 Northern Ireland Housing Executive

(1) In CTA 2010, after section 987B insert—

“Northern Ireland Housing Executive

987C Northern Ireland Housing Executive

The Northern Ireland Housing Executive is not liable to corporation tax.”

(2) The amendment made by this section has effect in relation to accounting periods beginning on or after 1 April 2020.