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HMRC internal manual

Corporate Finance Manual

Debt cap: the available amount: the Available Amount Regulations

This guidance applies to worldwide group periods of account ending before or straddling 1 April 2017.


A number of arrangements are in substance financing transactions and are taxed as such for relevant group companies. However, these arrangements may not be accounted for as financing transactions in the consolidated accounts of the worldwide group, with the result that groups may suffer excessive debt cap disallowances.

The Tax Treatment of Financing Costs and Income (Available Amount) Regulations 2010 (SI 2010/2929) (‘The Available Amount Regulations’) deal with this by including within the available amount certain finance charges which HMRC either treats as though they are loan relationships or where the return is deemed to be interest.

The Available Amount Regulations cover the following finance charges

  • Interest payable in respect of relevant non-lending relationships under CTA09/S479 and S480 - see CFM92465.
  • Alternative finance returns under alternative finance arrangements under CTA09/S511 to S513 (this is set out in more detail at CFM92435)
  • Manufactured interest treated as a loan relationship by CTA09/S540 - see CFM92465.
  • Finance charges treated as interest payable under a debtor repo or debtor quasi-repos by CTA09/S551 - see CFM92470.
  • Finance charges under structured finance arrangements treated as interest payable by CTA10/S761(3), 762(3), 766(3) or 769(3) - see CFM92470.