Corporate Interest Restriction (CIR) legislation became effective from 1 April 2017 and applies to corporate entities. It aims to restrict a group’s deductions for interest expense and other financing costs for Corporation Tax purposes, to an amount that is commensurate with taxed UK activities, taking account of how much the group borrows from third parties.
Further information is available:
• submit a Corporate Interest Restriction return
• restriction on Corporation Tax relief for interest deductions
HMRC has developed an Application Programming Interface (API) for submitting Interest Restriction Returns (IRR) and for reporting company appointments and revocations. This will be available for use from June 2021.
Software developers have now been provided with a roadmap to begin updating their products.
The existing service will run in parallel with the API until April 2022, at which time HMRC will be looking to mandate the use of API for submission of IRRs and reporting company appointments and revocations. The existing functionality will therefore be switched off at this time, and customers will no longer be able to submit through alternative routes such as email or with company tax returns.
We are interested to know if this will cause you any issues, so please contact us at SDSTeam@hmrc.gov.uk
