Consultation outcome

Corporate interest restriction - consultation on leases

This consultation has concluded

Download the full outcome

Corporate Interest Restriction: Tax response to accounting changes for leasing - summary of responses

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Detail of outcome

The consultation document set out 3 main options for legislative changes required to ensure the Corporate Interest Restriction (CIR) rules in Part 10 Taxation (International and other Provisions) Act 2010 continue to work as intended, following the proposed repeal of section 53 Finance Act 2011 and the introduction of the new lease accounting standard, International Financial Reporting Standard 16 (IFRS 16), with a mandatory implementation date of 1 January 2019.

The government has decided to adopt option 2, but with a modification, which broadly maintains the status quo.

The government is now publishing draft legislation that will require companies adopting IFRS 16, or the equivalent Financial Reporting Standard 101 under UK Generally Accepted Accounting Practice, to continue to classify their leases as either ‘finance leases’ or ‘operating leases’ for the purposes of CIR.

Comments on the draft legislation can be emailed to us until 31 August 2018.

Legislation is to be included in the next Finance Bill, to be effective from 1 January 2019.

You can read draft legislation and a supporting explanatory note and tax information and impact note.

Original consultation

Summary

A consultation on the options for amendments to the Corporate Interest Restriction rules.

This consultation ran from
to

Consultation description

Options for legislative changes required to ensure the Corporate Interest Restriction rules in Part 10 Taxation (International and Other Provisions) Act (TIOPA) 2010 work as intended following the proposed repeal of section 53 of the Finance Act 2011 and the introduction of the new lease accounting standard IFRS16 with a mandatory implementation date of 1 January 2019.

Documents

Corporate Interest Restriction: Tax response to accounting changes for leasing

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Published 1 December 2017
Last updated 13 July 2018 + show all updates
  1. The deadline for comments on draft legislation has been brought forward to 31 August (previously it was 28 September).
  2. Added summary of responses and link to draft legislation.
  3. First published.