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 1 U.K. The reporting company

Appointment by a worldwide group of a reporting company U.K.

1 (1) A member of a worldwide group may, by notice to an officer of Revenue and Customs, appoint an eligible company to be the group's reporting company. U.K.

(2) The notice must specify the first period of account of the group (“the specified period of account”) in relation to which the appointment is to have effect.

(3) An appointment under this paragraph has effect in relation to—

(a) the specified period of account, and

(b) subsequent periods of account of the group.

(4) The notice is of no effect unless—

(a) it is given during the period of [F2 12 months] beginning with the end of the specified period of account,

(b) it is authorised by at least 50% of eligible companies, and

(c) it is accompanied by a statement containing the required information.

(5) For this purpose “the required information” means—

(a) a list of the eligible companies that have authorised the notice, and

(b) a statement that the listed companies constitute at least 50% of eligible companies.

(6) The notice may be accompanied by a statement that such of the companies listed under sub-paragraph (5)(a) as are specified in the statement do not wish to be consenting companies in relation to returns submitted by the reporting company.

For provision as to the effect of a statement under this subparagraph, see paragraph 11.

(7) For the purposes of this paragraph a company is “eligible” if and only if the company —

(a) was a UK group company at a time during the specified period of account, and

(b) was not dormant throughout that period.

Textual Amendments

F2 Words in Sch. 7A para. 1(4)(a) substituted (12.2.2019) by Finance Act 2019 (c. 1), Sch. 11 para. 15(a)

Revocation by worldwide group of appointment under paragraph 1 U.K.

2 (1) A member of a worldwide group may, by notice to an officer of Revenue and Customs, revoke an appointment previously made under paragraph 1. U.K.

(2) The notice must specify the first period of account of the group (“the specified period of account”) in relation to which the appointment is to be revoked.

(3) An appointment that is revoked under this paragraph ceases to have effect in relation to—

(a) the specified period of account, and

(b) subsequent periods of account of the group.

(4) The notice is of no effect unless—

(a) it is given during the period of [F3 12 months] beginning with the end of the specified period of account,

(b) it is authorised by at least 50% of eligible companies, and

(c) it is accompanied by a statement containing the required information.

(5) For this purpose “the required information” means—

(a) a list of the eligible companies that have authorised the notice, and

(b) a statement that the listed companies constitute at least 50% of eligible companies.

(6) The revocation of an appointment does not prevent the making of a further appointment under paragraph 1 (whether at the same time as the revocation, or later).

(7) For the purposes of this paragraph a company is “eligible” if and only if the company —

(a) was a UK group company at a time during the specified period of account, and

(b) was not dormant throughout that period.

Textual Amendments

F3 Words in Sch. 7A para. 2(4)(a) substituted (12.2.2019) by Finance Act 2019 (c. 1), Sch. 11 para. 15(b)

Regulations supplementing paragraphs 1 and 2 U.K.

3 U.K. The Commissioners may by regulations make further provision about an appointment under paragraph 1 or the revocation of such an appointment under paragraph 2, including in particular provision—

(a) about the form and manner in which an appointment or revocation may be made;

(b) requiring a person to give information to an officer of Revenue and Customs in connection with the making of an appointment or revocation;

(c) prohibiting a company from being appointed unless it meets conditions specified in the regulations;

(d) about the time from which an appointment or revocation has effect;

(e) providing that an appointment or revocation is of no effect, or (in the case of an appointment) ceases to have effect, if a requirement under the regulations is not met.

Appointment of reporting company by Revenue and Customs U.K.

4 (1) This paragraph applies where— U.K.

(a) no appointment of a reporting company under paragraph 1 has effect in relation to a period of account of a worldwide group (“the relevant period of account”), and

(b) as a result of sub-paragraph (4)(a) of that paragraph, an appointment of a reporting company under that paragraph that has effect in relation to the relevant period of account is no longer possible.

(2) An officer of Revenue and Customs may, by notice to an eligible company, appoint it to be the group's reporting company.

(3) The notice must specify the relevant period of account (whether by specifying the dates on which it begins and ends or, if the officer does not have that information, by reference to a date or dates).

(4) The appointment has effect in relation to the relevant period of account.

(5) The appointment may be made—

(a) at any time before the end of the period of [F4 4 years] beginning with the end of the relevant period of account, or

(b) at any time after the end of that period if, at that time, an amount stated in the company tax return of a UK group company for a relevant accounting period can be altered.

(6) Paragraph 88(3) to (5) of Schedule 18 to FA 1998 (meaning of “can no longer be altered”) applies for the purposes of this paragraph.

(7) For the purposes of this paragraph a company is “eligible” if and only if the company —

(a) was a UK group company at a time during the relevant period of account, and

(b) was not dormant throughout that period.

Textual Amendments

F4 Words in Sch. 7A para. 4(5)(a) substituted (with effect in accordance with Sch. 3 para. 30-36 of the amending Act) by Finance (No. 2) Act 2023 (c. 30), Sch. 3 para. 20

Appointment by officer of Revenue and Customs of replacement reporting company U.K.

5 (1) This paragraph applies where— U.K.

(a) an appointment of a reporting company under paragraph 1 or 4 or this paragraph has effect in relation to a period of account of a worldwide group (“the relevant period of account”), and

(b) condition A or B is met.

(2) Condition A is that an officer of Revenue and Customs considers that the reporting company mentioned in sub-paragraph (1)(a) has not complied with, or will not comply with, a requirement under or by virtue of this Schedule.

(3) Condition B is that the reporting company mentioned in sub-paragraph (1)(a) has agreed that an officer of Revenue of Customs may exercise the power in this paragraph.

(4) An officer of Revenue and Customs may, by notice—

(a) revoke the appointment of the reporting company mentioned in sub-paragraph (1)(a), and

(b) appoint in its place an eligible company to be the reporting company of the group.

(5) The notice must—

(a) be given to each of the companies mentioned in sub-paragraph (4), and

(b) specify the relevant period of account (whether by specifying the dates on which it begins and ends or, if the officer does not have that information, by reference to a date or dates).

(6) Where the power in sub-paragraph (4) is exercised—

(a) the appointment that is revoked ceases to have effect in relation to—

(i) the relevant period of account, and

(ii) subsequent periods of account of the group;

(b) the appointment of the replacement has effect in relation to the relevant period of account.

(7) For the purposes of this paragraph a company is “eligible” if and only if the company —

(a) was a UK group company at a time during the relevant period of account, and

(b) was not dormant throughout that period.

Obligation of reporting company to notify group members of its status U.K.

6 (1) This paragraph applies where the appointment of a reporting company has effect in relation to a period of account of a worldwide group (“the relevant period of account”). U.K.

(2) The reporting company must, as soon as reasonably practicable after the relevant time, notify each relevant company that it is the group's reporting company in relation to the relevant period of account.

(3) In sub-paragraph (2) “the relevant time” means—

(a) if the relevant period of account is the first period of account in relation to which the appointment has effect, the time of the appointment;

(b) otherwise, the end of the period of 6 months beginning with the end of the relevant period of account.

(4) Sub-paragraph (2) does not require the reporting company to notify a relevant company if the reporting company notified that company under that sub-paragraph in relation to an earlier period of account.

(5) The duty to comply with sub-paragraph (2) is enforceable by the company required to be notified under that sub-paragraph.

(6) For the purposes of this paragraph a company is “relevant” if and only if the company meets condition A or B.

(7) Condition A is that the company—

(a) was a UK group company at a time during the relevant period of account, and

(b) was not dormant throughout that period.

(8) Condition B is that the company is the ultimate parent of the worldwide group.

Obligation of reporting company to submit interest restriction return U.K.

7 (1) This paragraph applies where the appointment of a reporting company has effect in relation to a period of account of a worldwide group. U.K.

(2) If the reporting company was appointed under paragraph 1 or 4, it must submit a return for the period of account to an officer of Revenue and Customs.

(3) If the reporting company was appointed under paragraph 5, it must submit a return for the period of account to an officer of Revenue and Customs unless a return for the period has already been submitted under sub-paragraph (2) or this sub-paragraph.

(4) A return submitted under this paragraph must be received by an officer of Revenue and Customs before the filing date in relation to the period of account.

(5) In this Part of this Act “the filing date”, in relation to a period of account of a worldwide group, means—

(a) the end of the period of 12 months beginning with the end of the period of account, or

[F5 (b) if an appointment of a reporting company under paragraph 4 or 5 has effect in relation to the period of account, the end of the period of 3 months beginning with the day on which the appointment was made,]

[F6 whichever is the later].

[F7 (5A) For an extension of the filing date in the case of a takeover, see paragraph 7A.]

(6) A return submitted under this paragraph is of no effect unless it is received by an officer of Revenue and Customs before—

(a) the end of the period of 36 months beginning with the end of the period of account, or

(b) if later, the end of the period of 3 months beginning with the day on which the reporting company was appointed.

This is subject to paragraph 57.

Textual Amendments

F5 Sch. 7A para. 7(5)(b) substituted (12.2.2019) by Finance Act 2019 (c. 1), Sch. 11 para. 16(a)

F6 Words in Sch. 7A para. 7(5) inserted (12.2.2019) by Finance Act 2019 (c. 1), Sch. 11 para. 16(b)

F7 Sch. 7A para. 7(5A) inserted (with effect in accordance with Sch. 11 para. 25 of the amending Act) by Finance Act 2019 (c. 1), Sch. 11 para. 17(1)

[F8 7A (1) This paragraph applies if— U.K.

(a) a period of account (“the affected period”) of a worldwide group (“the old group”) ends solely as a result of the ultimate parent of the old group becoming a member of a different worldwide group, and

(b) the time at which that happens is within 12 months of the beginning of the affected period.

(2) For the purposes of this Part of this Act the filing date in relation to the affected period of the old group is whichever is the later of—

(a) the date given by paragraph 7(5), and

(b) the end of the period of 24 months beginning with the affected period.]

Textual Amendments

F8 Sch. 7A para. 7A inserted (with effect in accordance with Sch. 11 para. 25 of the amending Act) by Finance Act 2019 (c. 1), Sch. 11 para. 17(2)

Revised interest restriction return U.K.

8 (1) This paragraph applies where— U.K.

(a) the appointment of a reporting company has effect in relation to a period of account of a worldwide group, and

(b) a return (“the previous interest restriction return”) was submitted under paragraph 7, or this paragraph, for the period of account.

(2) The reporting company may submit a revised interest restriction return for the period of account to an officer of Revenue and Customs.

(3) A revised interest restriction return submitted under sub-paragraph (2) is of no effect unless it is received by an officer of Revenue and Customs before—

(a) the end of the period of 36 months beginning with the end of the period of account, or

(b) if later, the end of the period of 3 months beginning with the day on which the reporting company was appointed.

This is subject to paragraphs 9 and 57.

[F9 (4) Where any of the figures contained in the previous interest restriction return have become incorrect (whether or not as a result of a member of the group amending, or being treated as amending, its company tax return), the reporting company must submit a revised interest restriction return (for the purpose of correcting those figures) to an officer of Revenue and Customs.]

[F10 (5) A revised interest restriction return submitted under sub-paragraph (4) is of no effect unless it is received by an officer of Revenue and Customs before the end of—

(a) the period of 3 months beginning with the relevant day, or

(b) in a case where sub-paragraph (5B) applies, such longer period as an officer of Revenue and Customs may allow.

(5A) For the purposes of sub-paragraph (5), the “relevant day” is—

(a) where the figures contained in the previous interest restriction return have become incorrect as the result of a member of the group amending, or being treated as amending, an amount stated in its company tax return, the first day on which that amount can no longer be altered (within the meaning of paragraph 88(3) to (5) of Schedule 18 to FA 1998);

(b) in any other case, the day on which the figures contained in the previous interest restriction return were found to have become incorrect.

(5B) This sub-paragraph applies where an officer of Revenue and Customs considers that, as a result of an enquiry into a company tax return of another member of the group, the reporting company may subsequently be required to submit another revised interest restriction return under sub-paragraph (4).

(5C) A revised interest restriction return submitted under sub-paragraph (4) may differ from the previous return only so far as the differences are in consequence of the correction referred to in that sub-paragraph.]

(6) A return submitted under this paragraph—

(a) must indicate the respects in which it differs from the previous return, and

(b) supersedes the previous return.

Textual Amendments

F9 Sch. 7A para. 8(4) substituted (with effect in accordance with Sch. 3 para. 30-36 of the amending Act) by Finance (No. 2) Act 2023 (c. 30), Sch. 3 para. 21(2)

F10 Sch. 7A para. 8(5)-(5C) substituted for Sch. 7A para. 8(5) (with effect in accordance with Sch. 3 para. 30-36 of the amending Act) by Finance (No. 2) Act 2023 (c. 30), Sch. 3 para. 21(3)

Extended period for submission of full return [F11 for period where no restriction] U.K.

Textual Amendments

F11 Words in Sch. 7A para. 9 cross-heading substituted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 8 para. 14(4)

9 (1) This paragraph applies where— U.K.

(a) a reporting company has submitted an F12 ... interest restriction return for a period of account of a worldwide group in accordance with this Schedule, and

(b) the worldwide group is not subject to interest restrictions in the return period.

(2) Despite the passing of the time limit in paragraph 8(3), [F13 an interest restriction return] for the period of account submitted under paragraph 8 [F14 which is a full interest restriction return] has effect if it is received before the end of the period of 60 months beginning with the end of the period of account.

Textual Amendments

F12 Word in Sch. 7A para. 9(1)(a) omitted (15.3.2018) by virtue of Finance Act 2018 (c. 3), Sch. 8 para. 14(2)

F13 Words in Sch. 7A para. 9(2) substituted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 8 para. 14(3)(a)

F14 Words in Sch. 7A para. 9(2) inserted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 8 para. 14(3)(b)

Meaning of “consenting company” and “non-consenting company” U.K.

10 (1) This paragraph makes provision for the purposes of this Part of this Act about whether a company is a “consenting company” in relation to an interest restriction return submitted by a reporting company. U.K.

(2) The company is a “consenting company” in relation to the return if, before the return is submitted—

(a) it has notified the appropriate persons that it wishes to be a consenting company in relation to interest restriction returns submitted by the reporting company, and

(b) it has not notified the appropriate persons that it no longer wishes to be a consenting company in relation to such returns.

(3) In sub-paragraph (2) “the appropriate persons” means—

(a) an officer of Revenue and Customs, and

(b) the reporting company in relation to the period of account.

(4) The company is a “non-consenting company”, in relation to the return, if it is not a consenting company in relation to the return.

Company authorising reporting company appointment treated as consenting company U.K.

11 (1) This paragraph applies where a company— U.K.

(a) is listed in a statement under sub-paragraph (4)(c) of paragraph 1 (list of companies authorising appointment of reporting company), and

(b) is not included in a statement under sub-paragraph (6) of that paragraph (companies authorising appointment of reporting company but not wishing to be consenting companies).

(2) The company is treated as having given, at the time of the appointment, a notice under paragraph 10(2)(a) in relation to interest restriction returns submitted by the reporting company.

(3) Sub-paragraph (2) does not prevent the company, at any time after the appointment, from giving a notice under paragraph 10(2)(b) in relation to interest restriction returns submitted by the reporting company.]