Taxation (International and Other Provisions) Act 2010 section 432

Overview of Chapter

Section 432 provides an overview of the special rules that exempt certain infrastructure companies from the corporate interest restriction, provided they meet qualifying conditions relating to public infrastructure assets, taxation status, and creditor arrangements.

• A "qualifying infrastructure company" must be fully taxed in the UK, have income and assets linked to public infrastructure, and make a formal election (revocable subject to a five-year rule)
• Public infrastructure assets are either tangible UK infrastructure assets meeting a public benefit test, or short-term let buildings in a UK property business — in both cases with an expected economic life of at least ten years and shown on the balance sheet of a fully UK-taxed group member
• Interest expense is exempt from the corporate interest restriction where the creditor is unrelated or is another qualifying infrastructure company (or the loan was entered into on or before 12 May 2016), and the creditor's recourse is limited to the income, assets, shares, or debt of a qualifying infrastructure company
• Additional rules set the tax-EBITDA of a qualifying infrastructure company to nil, and special provisions apply for joint ventures, partnerships, transparent entities, and decommissioning of public infrastructure assets