Taxation (International and Other Provisions) Act 2010 section 54

Matters required to be done on a "just and reasonable" basis

Section 54 explains what happens when HMRC disagrees with the basis a reporting company has used for a matter that must be dealt with on a "just and reasonable" basis in an interest restriction return.

• Various provisions in the corporate interest restriction rules require certain calculations or apportionments to be carried out on a "just and reasonable" basis.
• If HMRC opens an enquiry into an interest restriction return, an officer may determine that the reporting company should have used a different just and reasonable basis for a particular matter.
• Where HMRC makes such a determination, the closure notice ending the enquiry must require the reporting company to revise the return to reflect HMRC's determination.
• On appeal, the company can challenge HMRC's determination solely on the ground that the basis HMRC proposes is not just and reasonable — no other grounds of appeal are available.