CFM98510 - Interest restriction: administration: reporting requirements: power to require group members to provide information

TIOPA10/SCH7A/PARA60

In order to complete an interest restriction return, a reporting company will need information about other UK group companies. It will also need to keep the UK group companies informed on certain matters. These requirements are addressed in TIOPA10/SCH7A/PARA60.

To this end, a reporting company may serve a notice on a company that was a UK group company at any time in a period of account, requiring it to provide the reporting company with the information it needs to perform its functions under the Corporate Interest Restriction PARA60(1). This duty is enforceable by the reporting company, rather than HMRC (PARA60(3)).

Conversely, where a reporting company has submitted an interest restriction return to HMRC, it must, as soon as is reasonably practicable, provide a copy of it to each company that was a UK group company at any time during the period of account (PARA60(4)).

Similarly, if the reporting company receives a closure notice from HMRC under PARA47 it must provide a copy to all UK group companies (PARA60(5)).

Both of these obligations are enforceable by a company that should have been provided a copy of the return or the closure notice, rather than by HMRC.