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Corporate interest restriction: penalties

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HMRC has confirmed that no late filing penalty will be imposed where the reporting company has a reasonable excuse for missing the filing deadline for corporate interest restriction returns, so long as the return is submitted within a reasonable time after the reasonable excuse ends. Under the corporate interest restriction (CIR) rules, the filing deadline for an interest restriction return (IRR) is 12 months from the end of the period of account. In order to reduce the administrative burden on groups, HMRC will accept that there is a reasonable excuse where a majority of companies within a CIR group have obtained a deferral to late filing penalties for their company tax returns and the IRR is filed by the same agreed date.

Issue: 1514
Categories: News