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
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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




==See also==
==See also==
* [[Common Consolidated Corporate Tax Base]]
* [[Business in Europe: Framework for Income Taxation]]
* [[Corporate Interest Restriction]]
* [[Corporate Interest Restriction]]
* [[Corporation Tax]]
* [[Corporation Tax]]
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* [[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


See also