SCHEDULE 5Corporate interest restriction
PART 4Commencement and transitional provision
Qualifying infrastructure companies
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(1)
In the case of an accounting period of a company beginning before 1 April 2018, the company may make an election under section 433 or 444 of TIOPA 2010 before that date.
(2)
Companies making an election under section 435 of TIOPA 2010 before 1 April 2018 may specify a date in the election from which it has effect which is before the date on which the election is made.
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(1)
This paragraph applies in the case of an accounting period of a company beginning before 1 April 2018 (“the transitional accounting period”) if—
(a)
the company does not meet the public infrastructure assets test, or the public infrastructure income test, for the transitional accounting period, but
(b)
in the case of each test that it does not meet as mentioned in paragraph (a), the company would meet the test for an accounting period that includes that date and is at least 3 months long.
(2)
For the purposes of section 433 of TIOPA 2010 the company is treated as meeting the test (or tests) for the transitional accounting period.
(3)
For the purposes of sections 438 and 440 to 442 of TIOPA 2010 such adjustments to the relevant amounts are to be made as are just and reasonable, having regard to the extent to which, but for this paragraph, the company would not have met the public infrastructure assets test, or the public infrastructure income test, for the transitional accounting period.
(4)
For this purpose “the relevant amounts” means—
(a)
amounts that would otherwise have qualified as exempt amounts under section 438,
(b)
amounts that would otherwise have been treated as mentioned in section 440,
(c)
the tax-EBITDA of the company, and
(d)
the amounts that would otherwise have been left of account as a result of section 442.
(5)
Expressions used in this paragraph and in section 433 of TIOPA 2010 have the same meaning in this paragraph as they have in that section.