Commentary

D1.1444L Corporate interest restriction for banks, oil and gas companies, REITs etc

Corporate tax
Corporate tax | Commentary

D1.1444L Corporate interest restriction for banks, oil and gas companies, REITs etc

Corporate tax | Commentary

Corporate interest restriction—modification for specific types of companies

D1.1444L Corporate interest restriction for banks, oil and gas companies, REITs etc

This section considers the way in which the corporate interest restriction (CIR) legislation is modified for certain types of companies.

Banking companies

All amounts arising to a banking company (as defined in CTA 2010, ss 269A–269DO, Pt 7A) from a trade of dealing in financial instruments (other than impairment losses and the reversal of impairment losses) are taken into account in the calculation of its net tax-interest income or net tax-interest expense for the purposes of the CIR legislation. Financial instruments are defined as including1:

  1.  

    •     loan relationships

  2.  

    •     derivative contracts, and

  3.  

    •     shares or other securities

Oil and gas

Amounts which fall to be included in computing the ring fence income of a company (within the meaning of CTA 2010, s 275) or a company's aggregate gain or loss under TCGA 1992, s 197(3) (disposals of interests in oil fields: ring fence provisions) are ignored for the purposes of the CIR legislation. Where the

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