½Û×ÓÊÓƵ

Corporate interest restriction ― frequently asked questions

Produced by a Tolley Corporation Tax expert
Corporation Tax
Guidance

Corporate interest restriction ― frequently asked questions

Produced by a Tolley Corporation Tax expert
Corporation Tax
Guidance
imgtext

The following scenarios are intended to illustrate how the corporate interest restriction (CIR) will apply in a variety of real-world situations. The scenarios are intended to be more complex than the most simple situations but not uncommon.

For a general overview of the regime, see the Corporate interest restriction ― overview guidance note.

How does the CIR apply if a company’s accounting periods (APs) do not align with the period of account (PoA)?

Most of the computations and allocations required by the CIR are carried out by reference to a group’s PoA. UK corporation tax, however, operates by reference to APs of individual companies, which do not necessarily align with the periods for which a group draws up consolidated financial statements. The term used to describe an AP of any group company that falls wholly or partly within a given PoA is a relevant AP.

Where a UK group company’s APs exactly align with the periods for which its group draws up financial statements, that company will have only one relevant AP and it will

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by
  • 16 Apr 2024 10:01

Popular Articles

Income tax losses ― overview

Income tax losses ― overviewIncome tax losses can arise due to a number of reasons, but not all losses can be relieved against total income and some losses can only be set against certain types of component income. The table below is a summary of the main reliefs for income tax losses.Summary of

04 Mar 2021 12:19 | Produced by Tolley Read more Read more

Spouse exemption from inheritance tax

Spouse exemption from inheritance taxArguably, the most important inheritance tax exemption is the spouse exemption from inheritance tax.There is no IHT to pay on gifts from husband to wife and vice versa, or from one civil partner to the other (referred to collectively in this note as ‘spouses’).

14 Jul 2020 13:56 | Produced by Tolley in association with Emma Haley at Boodle Hatfield LLP Read more Read more

Losses on shares set against income

Losses on shares set against incomeUsually, allowable capital losses can only be set against chargeable gains. If the losses are not fully utilised against gains in the year in which they arise, the excess is carried forward to use against future gains. See the Use of capital losses guidance note

14 Jul 2020 12:12 | Produced by Tolley Read more Read more