CFM98625 - Interest restriction: administration: reporting requirements: conclusiveness of interest restriction return amounts
TIOPA10/SCH7A/PARA76
TIOPA10/SCH7A/PARA 76 sets out the circumstances in which an amount stated in an interest restriction return may be treated as conclusively determined.
An amount in an interest restriction return that has become conclusive is one that can no longer be altered and this will be the case where all of the following apply:
- The interest restriction return in which the amount is included has not been superseded by a subsequent interest restriction return.
- The ‘applicable time limit’ has passed. This is the latest time at which a revised interest restriction return may be submitted, normally the later of thirty-six months after the end of a period of account or three months after the appointment of a reporting company but, if later, twelve months after the issue of a determination.
- The completion of any enquiry into the interest restriction return.
- Where a closure notice issued on completion of an enquiry includes a statement of steps that must completed (PARA 49(2)(b)) the 30-day period for making an appeal against the closure notice has passed.
- Finally, if an appeal is made, the appeal has been finally determined.
PARA76 does not limit the power of HMRC to open an interest restriction enquiry under extended time limits (CFM98750), nor to make determinations under PARA 56 (CFM98560), nor PARA58 (CFM98870) following an enquiry.
However if an amount is also stated in a company tax return, the provisions of FA98/SCH18/PARA88 would normally apply instead. But, PARA 88(9) provides that nothing in PARA88 affects the operation of the CIR in TIOPA10/PT10. Accordingly, where a company tax return is amended or treated as amended, this has effect, notwithstanding the normal time limit for amending a company tax return in FA98/SCH18/PARA15(4). Guidance on the manner in which amounts in an interest restriction return are given effect at company level is given at CFM98630+.