SolvedCOM23191 | Assessing: CTSA assessments: Corporate Interest Restriction returns (Action Guide)
From HM Revenue & Customs · COTAX Manual
To handle a Corporate Interest Restriction return, consider the steps 1 - 8 below. The guide is presented as follows.
| Action | Steps |
|---|---|
| Election relates to a company dealt with by Large Business (LB) | Step 1 |
| Elections not included in this guidance | Step 2 |
| Elections included within this guidance and time limits | Step 3 |
| Elections outside time limits | Step 4 - 5 |
| Elections within time limits | Step 6 |
| Noting COTAX | Step 7 |
| Elections relating to S433, S435 and S444 | Step 8 |
Election relates to a company dealt with by Large Business
1. Refer the election to the relevant Large Business Regional Mailbox team.
Elections not covered by this guidance
2. If the election is not one listed below, refer to relevant guidance for that election.
Elections covered by this guidance and time limits
3.
| Election | Time limit |
|---|---|
| S433 Public Infrastructure election | Before the end of the accounting period (AP) to which it relates or 1 April 2018 if later |
| S435 Joint Group Infrastructure election | Before the end of the accounting period to which it relates or 1 April 2018 if later |
| S444 Joint Venture Company election | Before the end of the accounting period to which it is to have effect |
| S456 Fair Value Accounting election | Within 12 months from the later of (a) The end of the first AP in which the company has a fair value creditor relationship or (b) if that AP ended before 1 April 2017, the end of the first AP after that date |
| S484 Ultimate Parent Company election | Within 12 months from the later of (a) The end of the first AP in which the company has a fair value creditor relationship or (b) if that AP ended before 1 April 2017, the end of the first AP after that date |
| S486 Ultimate Parent Company election | Before the end day. The end day must fall within the accounts free period and not later than the final |
| Part 4 Paragraph 31 Diagnosed Rules election | By 31 March 2018 and is irrevocable |
If the election is listed above and is outside the time limits
4. If it is accompanied by a request for late acceptance because of a reasonable excuse, forward the election to the (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
5. If no accompanying letter, issue letter acknowledging receipt explaining it cannot be accepted / is invalid as it is outside of accepted time limit. The letter should include details of what this is i.e. date for AP ending.
Election within time limits and listed above
6. If the company has requested an acknowledgement, issue an acknowledgment letter. This should not include any reference to the validity of the claim.
For all cases
7. Add a COTAX note detailing the type of election, date received, whether within time limit and if an acknowledgment letter was issued.
Elections relating to S433, S435 and S444
8. If the election is under S433, S435 or S444 add the details to the CIR Election spreadsheet.
Close the DMS item.