Taxation (International and Other Provisions) Act 2010 section 43

Scope of enquiry

Section 43 defines what HMRC can and cannot examine when conducting an enquiry into an interest restriction return filed by a worldwide group.

• An enquiry covers everything included or required to be included in the interest restriction return, including any elections made within it.
• HMRC cannot use the enquiry to investigate amounts that properly belong in an individual company's corporation tax return, even if those amounts feed into the interest restriction calculations.
• However, HMRC can still consider whether the corporate interest restriction rules require such amounts to be brought into account or left out of account in any accounting period, and how those rules apply to determine the treatment of amounts across group companies.
• Where a revised interest restriction return replaces one whose enquiry has already been closed, the new enquiry is limited to matters arising from information not included in the original return.