Taxation (International and Other Provisions) Act 2010 section 433

Meaning of "qualifying infrastructure company"

Section 433 sets out the four conditions a company must satisfy throughout an accounting period to be treated as a "qualifying infrastructure company" for the purposes of the corporate interest restriction public infrastructure rules.

• A company must pass both a public infrastructure income test (all or nearly all income from qualifying infrastructure activities, shares in, or loans to other qualifying infrastructure companies) and a public infrastructure assets test (all or nearly all balance sheet assets relate to qualifying infrastructure activities or holdings in other qualifying infrastructure companies).
• The company must be fully taxed in the UK — meaning all its income sources are within the corporation tax charge, it has not elected for the foreign permanent establishment exemption, and it has not claimed double taxation relief for the period.
• The company must have made a valid election under section 434 that is in effect for the accounting period in question.
• Both the income and assets tests include a de minimis allowance: insignificant amounts of non-qualifying income or insignificant asset values that do not relate to qualifying infrastructure may be disregarded, and temporary breaches of the assets test of insignificant duration are also overlooked.