Taxation (International and Other Provisions) Act 2010 section 58

Power of Revenue and Customs to make determinations following enquiry

Section 58 gives HMRC the power to make their own determination of a company's share of a group's disallowed interest where, following an enquiry, the required interest restriction return is either not submitted on time or does not comply with what was required.

• Where a closure notice requires a company to submit an interest restriction return for a group subject to interest restrictions, HMRC can step in if the return is late or non-compliant.
• HMRC may determine the company's pro-rata share of the group's total disallowed amount for the relevant period of account, and allocate that share across the company's relevant accounting periods.
• Where the determination produces a non-nil amount for an accounting period, the company must disregard tax-interest expense amounts in that period equal to that pro-rata share.
• HMRC must notify both the company and the reporting company of the determination, and the determination must be made within three months of the deadline for submitting the return.