CFM76048 – Corporate Finance Manual – HMRC Internal Manual
CTA09/S465B and S702 When a company holds a loan or derivative whose amounts are recognized…
Monthly Archives: April, 2016
CFM95680 – Corporate Finance Manual – HMRC Internal Manual
TIOPA10/S388 Where income is derived from a foreign jurisdiction for a UK resident company and…
CFM96950 – Corporate Finance Manual – HMRC Internal Manual
TIOPA10/445 The basic election of QIC joint venture under TIOPA10/S444 applies when the joint venture…
CFM72580 – Corporate Finance Manual – HMRC Internal Manual
The corporate tax charge: the formula: ‘RP’ and ‘DS’ Regulation 14(1) establishes the basis on…
CFM98010 – Corporate Finance Manual – HMRC Internal Manual
TIOPA10/S461 The Corporate Interest Restriction contains an Anti-Avoidance Plan Rule (RAAR) which has the effect…
CFM64010 – Corporate Finance Manual – HMRC Internal Manual
Insight Many entries in a company’s corporation tax return, in particular its trading profit, will…
CFM1120 – Corporate Finance Manual – HMRC Internal Manual
What does the Corporate Finance Manual contain? The Corporate Finance Handbook begins with an explanation…
CFM52033 – Corporate Finance Handbook – HMRC Internal Handbook
These guidelines apply to accounting periods of the company beginning on or after January 1,…
CFM72700 – Corporate Finance Manual – HMRC Internal Manual
Investor taxation The main cash flows of a securitization are the claims on the securitized…
CFM46200 – Corporate Finance Manual – HMRC Internal Manual
Main features of pension company taxation rules Schedule 13 of the FA 2007 introduced major…
CFM96640 – Corporate Finance Manual – HMRC Internal Manual
TIOPA10/S423 The default approach for the calculation of group interest and group EBITDA is closely…
CFM35810 – Corporate Finance Manual – HMRC Internal Manual
CTA09/PT5/CH8 Overview Under normal lending relationship rules, interest is exempt when accrued in accounts, not…
CFM51036 – Corporate Finance Manual – HMRC Internal Manual
CTA09/S604A These guidelines apply to accounting periods of the company beginning on or after January…
CFM37830 – Corporate Finance Manual – HMRC Internal Manual
The hybrid capital instrument rules apply to loan relationships that fall under a bespoke definition…
CFM60010 – Corporate Finance Manual – HMRC Internal Manual
Exchange gains and losses This part of the Corporate Finance Manual deals with the taxation…
CFM70020 – Corporate Finance Manual – HMRC Internal Manual
CFM70010 explains that certain tax rules relating to corporate debt are found outside the main…
CFM72260 – Corporate Finance Manual – HMRC Internal Manual
Securitization Companies (Application of Article 83(1) of the Finance Act 2005: Accounting Standards) Regulations 2007…
CFM95990 – Corporate Finance Manual – HMRC Internal Manual
The calculation of the group’s net interest expense (MIGN) is based on the amounts recognized…
CFM37810 – Corporate Finance Manual – HMRC Internal Manual
Some companies raise funds by issuing instruments (referred to here as “hybrid capital”) that sit…
CFM64445 – Corporate Finance Manual – HMRC Internal Manual
CTA10/S14, 15 Loss carry forward CTA10/S14 deals with the situation where a company, in accordance…
CFM97710 – Corporate Finance Manual – HMRC Internal Manual
TIOPA 2010/S452 The Corporate Interest Restriction (CIR) applies to Real Estate Investment Trusts (REITs) and…
CFM73030 – Corporate Finance Manual – HMRC Internal Manual
Example of an avoidance scheme to alleviate interest and principal Example 1: ‘plain vanilla’ loan…
CFM35175 – Corporate Finance Manual – HMRC Internal Manual
CTA09/S352B Tax asymmetries can arise in situations where a company borrows externally and then lends…
CFM97380 – Corporate Finance Manual – HMRC Internal Manual
TIOPA10/S440-S442 Although a company is a qualifying infrastructure company (QIC), in addition to exempting certain…
CFM73100 – Corporate Finance Manual – HMRC Internal Manual
The legislative remedy: relevant effects 1 and 2 The first relevant effect, in Section 759(3),…
CFM92457 – Corporate Finance Manual – HMRC Internal Manual
These guidelines apply to worldwide group accounting periods ending on or before April 1, 2017.…
CFM97745 – Corporate Finance Manual – HMRC Internal Manual
TIOPA10/S452(6) to (10) Example 1 A UK REIT group has a refusal of CIR of…
CFM52038 – Corporate Finance Manual – HMRC Internal Manual
F(2)A15/SCH7/PARAS120-129 The changes made to the provisions relating to derivative contracts by F(2)A15 affected not…
CFM37780 – Corporate Finance Manual – HMRC Internal Manual
Many holders and issuers of convertible or exchangeable securities, or asset-linked securities, will separately account…
CFM95730 – Corporate Finance Manual – HMRC Internal Manual
TIOPA/S406(5)-(7) The purpose of the calculations is to arrive at an overall tax-EBITDA figure for…
CFM76020 – Corporate Finance Manual – HMRC Internal Manual
S316 (lending relationships) and S614 (derivative contracts) are the main provisions for taking into account…
CFM76100 – Corporate Finance Manual – HMRC Internal Manual
SI 2004/3271: 3C regulation Certain debits and credits resulting from a change in accounting method…
CFM74120 – Corporate Finance Manual – HMRC Internal Manual
Processing of warranty contracts The lender of the securities will normally require security from the…
CFM51095 – Corporate Finance Manual – HMRC Internal Manual
CTA09/S607ZA Relief for pre-opening financing charges From 6 April 2020, a non-resident company which carries…
CFM97830 – Corporate Finance Manual – HMRC Internal Manual
TIOPA10 / S460 (1) (c) – (d) The corporate interest restriction rules contain specific provisions…
CFM37890 – Corporate Finance Manual – HMRC Internal Manual
The Treasury has adopted the Taxation of Regulatory Capital Securities Regulations 2013 (“RCS Regulations”) to…
CFM33275 – Corporate Finance Manual – HMRC Internal Manual
CFA09/S330A-330C These guidelines apply to accounting periods beginning on or after January 1, 2016. Overview…
CFM95850 – Corporate Finance Manual – HMRC Internal Manual
TIOPA10/S409 Where the income is not or is only partially subject to UK tax due…
CFM77630 – Corporate Finance Manual – HMRC Internal Manual
Company A and company B are part of the same group. Company A issues a…
CFM76090 – Corporate Finance Manual – HMRC Internal Manual
SI 2004/3271: rules 3A and 3B Amounts reported Prescribed debits and credits (see CFM76080) are…
CFM97610 – Corporate Finance Manual – HMRC Internal Manual
The rules of limitation of the interest of the companies (CIR) apply to any company…
CFM50070 – Corporate Finance Manual – HMRC Internal Manual
Cases in which the rules on derivative contracts do not apply The vast majority of…
CFM64120 – Corporate Finance Manual – HMRC Internal Manual
CTA10 / S6, S7 Company accounts drawn up in a presentation currency other than the…
CFM33220 – Corporate Finance Manual – HMRC Internal Manual
Accounting treatment IAS39 / FRS102 / FRS105 IAS39, FRS102 and [FRS105] (and formerly FRS 26)…
CFM75100 – Corporate Finance Manual – HMRC Internal Manual
Interest paid in the ordinary course of banking business If a bank pays short-term interest,…
CFM64015 – Corporate Finance Manual – HMRC Internal Manual
For the periods 1993 to 2004, UK GAAP rules for accounting for exchange differences were…
CFM72350 – Corporate Finance Manual – HMRC Internal Manual
What are “financial assets”? CFM72380 through CFM72470 explain the definitions of the five types of…
CFM95710 – Corporate Finance Handbook – HMRC Internal Handbook
TIOPA10 / PART10 / CH6 The function of the corporate interest restriction is to provide…
CFM72410 – Corporate Finance Handbook – HMRC Internal Handbook
The holding company: regulation 6 The holding company must meet two conditions: its activity, apart…
CFM72010 – Corporate Finance Manual – HMRC Internal Manual
Fund The Oxford English Dictionary (Compact Edition) defines “securitization” as “the conversion of an asset,…
CFM1110 – Corporate Finance Manual – HMRC Internal Manual
What is the Corporate Finance Handbook? The Corporate Finance Manual (CFM) contains guidelines from HM…
CFM90150 – Corporate Finance Manual – HMRC Internal Manual
These guidelines apply to worldwide group accounting periods ending on or before April 1, 2017.…
CFM72590 – Corporate Finance Manual – HMRC Internal Manual
The corporate tax charge: the formula: ‘D’ D is the lesser of: the sum of…
CFM37850 – Corporate Finance Manual – HMRC Internal Manual
Where an instrument meets the CTA09/S475C definition of a hybrid capital instrument, the tax rules…
CFM95720 – Corporate Finance Manual – HMRC Internal Manual
TIOPA10/S406, S407 Adjusted corporation tax revenue is a company’s taxable profit or loss for an…
CFM55510 – Corporate Finance Manual – HMRC Internal Manual
CTA09/S665, 666 References to a standard convertible are instruments where the holder has the option…
CFM35985 – Corporate Finance Manual – HMRC Internal Manual
FA15/S25 What changes have been made? FA15/S25 limited the categories of connection to which the…
CFM98360 – Corporate Finance Manual – HMRC Internal Manual
F(No.2)A17/Sch5/Para29-30 The business interest restriction applies to tax-interest and tax-EBITDA amounts. These in turn are…
CFM55210 – Corporate Finance Manual – HMRC Internal Manual
Aspects of taxable gains from convertible and exchangeable securities – the holder’s perspective Securities that…
CFM99300 – Corporate Finance Manual – HMRC Internal Manual
Priority rules The CIR applies after most other tax rules that may affect the calculation…
CFM76010 – Corporate Finance Handbook – HMRC Internal Handbook
Overview This section of the Corporate Finance Handbook explains the transitional adjustments that arise for…
CFM98693 – Corporate Finance Manual – HMRC Internal Manual
CTA10/S679 TIOPA10/S379 CTA10/PT14, “Change in Business Ownership” contains detailed rules that may restrict relief for…
CFM72680 – Corporate Finance Manual – HMRC Internal Manual
Other tax rules Transfer price See INTM566010 for guidance on thin capitalization issues in securitization…
CFM72620 – Corporate Finance Manual – HMRC Internal Manual
Commencement and termination as a securitization company A new company created from January 1, 2007…
CFM98580 – Corporate Finance Manual – HMRC Internal Manual
TIOPA10/SCH7A/PARA22 Where a reporting company concludes that the total disallowed amount (TIOPA10/S373(2) for the global…
CFM76040 – Corporate Finance Manual – HMRC Internal Manual
CTA09/S465B and S702 In the event of a change in the basis of accounting for…
CFM33160 – Corporate Finance Manual – HMRC Internal Manual
CTA09/S320 Capitalized amounts These guidelines cover cases where interest is capitalized in a company’s financial…
CFM73160 – Corporate Finance Manual – HMRC Internal Manual
Deduction for financial expenses The objective of the structured finance rules is to ensure the…