Limits on tax deductions for interest: the debt cap

Resource type: Practice note

Status: Maintained

Jurisdiction: United Kingdom

A practice note setting out the rules imposing a limit on the corporation tax deductions that UK members and branches of a worldwide group are allowed for interest (known as the "debt cap"). The debt cap rules are contained in Part 7 of, and Part 7 of Schedule 9 to, the Taxation (International and Other Provisions) Act 2010 (TIOPA 2010) (formerly, section 35 of, and Schedule 15 to, the Finance Act 2009).

PLC Tax

Register for free access

To access this resource and thousands more, register for a free, no-obligation trial of Practical Law. Register using the button below, telephone +44 (0)20 7202 1220 or e-mail info@practicallaw.com.

A free trial will give you:

✔	Unlimited access to Practical Law online know-how
✔	Thousands of market standard documents and clauses
✔	Daily alerts and weekly update e-mails on key legal developments in your practice area
	Register

Log in

To access this resource, log in below or register for free access.

Contact us

Our customer services team are available every working day 8.30am to 7pm (GMT).

Actions

Resource information

Show resource details Hide resource details

Resource ID: 7-386-4223
Products: PLC UK Tax
This resource is maintained, meaning that we monitor developments on a regular basis and update it as soon as possible.

Ask a question

Related content

Related content

Topics

Anti-avoidance: TaxAnti-avoidance: Tax (http://construction.practicallaw.com/6-376-4380)
Asset FinanceAsset Finance (http://construction.practicallaw.com/5-201-5200)
Cross-border: FinanceCross-border: Finance (http://construction.practicallaw.com/7-200-1612)
Cross-border: TaxCross-border: Tax (http://construction.practicallaw.com/2-103-1387)
Debt Capital MarketsDebt Capital Markets (http://construction.practicallaw.com/9-103-1100)
Lending: GeneralLending: General (http://construction.practicallaw.com/1-103-2033)
Structured FinanceStructured Finance (http://construction.practicallaw.com/8-103-1105)

Practice notes

Companies: UK residence and permanent establishments Companies: UK residence and permanent establishments (http://publicsector.practicallaw.com/topic4-204-0101)
Cross-border interest and royalties payments: tax Cross-border interest and royalties payments: tax (http://publicsector.practicallaw.com/topic1-367-0987)
Financing multinational groups: tax issues Financing multinational groups: tax issues (http://publicsector.practicallaw.com/topic9-375-8405)
Foreign profits of companies: tax reform Foreign profits of companies: tax reform (http://publicsector.practicallaw.com/topic8-369-8105)
Groups of companies: tax Groups of companies: tax (http://publicsector.practicallaw.com/topic6-107-3728)
Loan relationships Loan relationships (http://publicsector.practicallaw.com/topic9-219-4959)
Private equity: management buyouts: tax issues for the investee group Private equity: management buyouts: tax issues for the investee group (http://publicsector.practicallaw.com/topic7-376-3399)
Subsidiary or permanent establishment: tax Subsidiary or permanent establishment: tax (http://publicsector.practicallaw.com/topic0-366-9970)
The UK as a holding company location: tax factors The UK as a holding company location: tax factors (http://publicsector.practicallaw.com/topic6-523-7674)
Thin capitalisation and transfer pricing Thin capitalisation and transfer pricing (http://publicsector.practicallaw.com/topic3-367-0991)

Checklist

Debt cap: checklist Debt cap: checklist (http://publicsector.practicallaw.com/topic8-503-5788)

Glossary

European Economic Area (EEA) European Economic Area (EEA) (http://publicsector.practicallaw.com/topic0-107-6555)
International Accounting Standards (IAS) International Accounting Standards (IAS) (http://publicsector.practicallaw.com/topic6-107-6722)

Legal update: archive

CFC reform: Finance Bill 2012 changes CFC reform: Finance Bill 2012 changes (http://publicsector.practicallaw.com/topic6-518-9456)

{ "siteName" : "PLC", "objType" : "PLC_Doc_C", "objID" : "1247268758989", "objName" : "Limits on tax deductions for interest the debt cap", "userID" : "2", "objUrl" : "http://publicsector.practicallaw.com/cs/Satellite/7-386-4223?null", "pageType" : "", "contentAccessed" : "false", "analyticsPermCookie" : "21ff6cde3:13eb9ec674d:-f0", "analyticsSessionCookie" : "21ff6cde3:13eb9ec674d:-ef", "statisticSensorPath" : "http://analytics.practicallaw.com/sensor/statistic" }