Debt cap: compliance issues

Key points concerning compliance issues under the debt cap rules are: no additional compliance obligations arise if the gateway test is passed; if the gateway test is failed, but no disallowance results, there is no requirement to file the various statements of disallowances and exemptions, and there is also no need to demonstrate to HMRC why there is no disallowance, but a group may wish to raise this as part of normal discussions with their CRM; if the gateway test is failed, and a disallowance results, the group is required to provide a 'statement of allocated disallowances' to HMRC. There are some uncertainties as to the way the debt cap rules interact with CTSA obligations. A number of elections are available under the debt cap rules.