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
381F1Set-off of disallowances and reactivations in the same accounting period
1
This section applies where, as a result of the operation of this Part in relation to different periods of account (whether of the same or a different worldwide group), a company would, apart from this section—
a
be required to leave out of account one or more tax-interest expense amounts in an accounting period under section 375 or 376, and
b
be required to bring one or more tax-interest expense amounts into account in that accounting period under section 379.
2
In this section—
a
“the gross disallowed amount” means the amount, or total of the amounts, mentioned in subsection (1)(a);
b
“the gross reactivated amount” means the amount, or total of the amounts, mentioned in subsection (1)(b).
3
Where the gross disallowed amount is equal to the gross reactivated amount, no tax-interest expense amounts are to be left out of account in the accounting period under this Part or brought into account in the accounting period under this Part.
4
Where the gross disallowed amount is more than the gross reactivated amount—
a
the requirement in section 375 or 376 is to leave out of account tax-interest expense amounts that, in total, equal the gross disallowed amount less the gross reactivated amount, and
b
no amount is to be brought into account in the accounting period under section 379.
5
Where the gross reactivated amount is more than the gross disallowed amount—
a
no amount to be left out of account in the accounting period under section 375 or 376, and
b
the requirement in section 379 is to bring into account the gross reactivated amount less the gross disallowed amount.
Pt. 10: the existing Pt. 10 renumbered as Pt. 11 (except for ss. 375, 376 which are repealed), the existing ss. 372-374, 377-382 renumbered as ss. 499-507 and a new Pt. 10 (ss. 372-498) inserted (with effect in accordance with Sch. 5 para. 25(1)-(3) of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)