Fixed ratio method: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (To hold detail, following HMRC's rendering of 'Fixed ratio' method.) |
imported>Doug Williamson (Update link.) |
||
| (3 intermediate revisions by the same user not shown) | |||
| Line 8: | Line 8: | ||
Under the UK's Corporate Interest Restriction, with effect from April 2017: | Under the UK's Corporate Interest Restriction, with effect from April 2017: | ||
*The fixed ratio for a large worldwide group is 30% | *The fixed ratio for a large worldwide group is 30% | ||
*The measure of profits the group's aggregate tax-EBITDA | *The measure of profits is the group's aggregate tax-EBITDA | ||
==See also== | ==See also== | ||
* [[ | * [[Business in Europe: Framework for Income Taxation]] | ||
* [[Corporate Interest Restriction]] | * [[Corporate Interest Restriction]] | ||
* [[Corporation Tax]] | * [[Corporation Tax]] | ||
| Line 19: | Line 19: | ||
* [[Group]] | * [[Group]] | ||
* [[Tax avoidance]] | * [[Tax avoidance]] | ||
* [[Tax-EBITDA]] | |||
* [[Worldwide interest cap]] | * [[Worldwide interest cap]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
Latest revision as of 16:10, 21 February 2022
Tax - anti-avoidance.
The fixed ratio method is a mechanism to limit corporate tax relief for interest and amounts economically equivalent to interest.
It limits the amounts eligible for relief to a percentage of a taxpayer's profits.
Under the UK's Corporate Interest Restriction, with effect from April 2017:
- The fixed ratio for a large worldwide group is 30%
- The measure of profits is the group's aggregate tax-EBITDA
