Fixed ratio method: Difference between revisions
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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 | ||
Revision as of 11:13, 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 is the group's aggregate tax-EBITDA
