Taxation (International and Other Provisions) Act 2010 section 389

The "net tax-interest expense" or "net tax-interest income" of a company

Section 389 explains how to determine whether a company within a worldwide group has a net tax-interest expense or a net tax-interest income for a period, and how those amounts are linked to specific accounting periods.

• A company has a net tax-interest expense when its total tax-interest expense amounts exceed its total tax-interest income amounts for the period; the net expense is the amount of that excess.
• Conversely, a company has net tax-interest income when its total tax-interest income amounts exceed its total tax-interest expense amounts; the net income is the amount of that excess.
• A company's net tax-interest expense or net tax-interest income is "referable" to a particular accounting period to the extent it is made up of amounts that are (or would otherwise be) brought into account in that accounting period.
• These definitions apply throughout the corporate interest restriction rules in this Part of the Act.