Corporation Tax Act 2010 section 357YD

Further provision about amounts included, or not included, in "restitution interest"

Section 357YD clarifies when interest payments made to a company before a final judgment or settlement are excluded from or included in the definition of restitution interest, particularly where those payments were limited to simple interest at a statutory rate.

• Interest paid to a company before the relevant qualifying condition (Condition B) was met is not restitution interest, provided the amount was limited to simple interest at a statutory rate.
• However, where a larger award of interest is later determined, agreed or paid, any portion that represents or is calculated by reference to simple interest at a statutory rate can still qualify as restitution interest.
• A "relevant amount of interest" for these purposes means an amount that was paid in full before Condition B was satisfied in relation to it.
• The interpretive rules in section 357YC(7) regarding statutory rates also apply to this section.