Draft legislation: the Corporate Interest Restriction (Financial Statements: Group Mismatches) Regulations 2017
This consultation closes at
Proposed provisions to prevent unintended restrictions on transition to the Corporate Interest Restriction (CIR) rules.
The new Corporate Interest Restriction (CIR) rules were introduced in Schedule 10 of Finance Bill 2017 which was published on 20 March 2017. They limit the tax relief that large multinational businesses can claim for interest and other financing expenses and take effect from 1 April 2017.
A consultation on how the CIR rules should operate was opened in May 2016 and the government’s response to this was published in December 2016.
Regulations are needed to ensure the interaction of the rules with accounting standards does not give an unwarranted restriction on commencement of the CIR. In particular, they deal with timing differences between the group and entity accounts when applying the fixed ratio debt cap and also for the group ratio method for highly leveraged groups.
HM Revenue and Customs has published draft regulations, together with a draft explanatory memorandum, for a period of consultation which will close on 26 May 2017.
Any comments on these drafts should be made to Oli Jones by Telephone: 03000 541970 or by email: email@example.com.