Fixed ratio method: Difference between revisions
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imported>Doug Williamson (To hold detail, following HMRC's rendering of 'Fixed ratio' method.) |
imported>Doug Williamson (Expand for Tax-EBITDA.) |
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* [[Group]] | * [[Group]] | ||
* [[Tax avoidance]] | * [[Tax avoidance]] | ||
* [[Tax-EBITDA]] | |||
* [[Worldwide interest cap]] | * [[Worldwide interest cap]] | ||
Revision as of 06:58, 2 May 2018
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 the group's aggregate tax-EBITDA
