Legislation – Finance Act 2026

“1

(1)

An interest restriction return for a period of account of a worldwide group is of no effect unless it is submitted to an officer of Revenue and Customs by the reporting company of the group for that period.

(2)

A member of a worldwide group may appoint a company to be the group’s reporting company for a period of account.

(3)

The appointment is of no effect for the period of account unless—

(a)

the company to be appointed as the group’s reporting company for the period is an eligible company for that period, and

(b)

the appointment is authorised by more than half of the eligible companies for that period.

(4)

For this purpose a company is “eligible” if and only if the company—

(a)

was a UK group company at a time during the period of account, and

(b)

was not dormant throughout that period.”

“Appointment of company where purported return submitted

1A

(1)

This paragraph applies where a company has purported to submit to an officer of Revenue and Customs a return for a period of account of a worldwide group despite the fact it had not been appointed for the period of account at the time at which it purported to submit the return.

(2)

A member of the group may, in accordance with paragraph 1, appoint the company as the group’s reporting company for the period of account.

(3)

If an appointment is made as mentioned in sub-paragraph (2)—

(a)

the company is to be treated for the purposes of this Part of this Act as if it had been appointed under paragraph 1, and

(b)

the appointment is to be treated for the purposes of this Part of this Act as if it had been made at the time immediately before the return (or, if more than one, the first return) for the period of account was submitted.

(4)

But—

(a)

sub-paragraph (3) does not apply for the purposes of paragraph 11A, and

(b)

for the purposes of paragraph 6(2), the time of the appointment is taken to be the actual time at which the company was appointed as the group’s reporting company (rather than the time provided for by sub-paragraph (3)(b)).”

“2

(1)

A member of a worldwide group may revoke an appointment previously made under paragraph 1 in relation to a period of account.

(2)

The revocation is of no effect for the period of account unless it is authorised by more than half of the eligible companies for that period.

(3)

For this purpose a company is “eligible” if and only if the company—

(a)

was a UK group company at a time during the period of account, and

(b)

was not dormant throughout that period.

(4)

The revocation of an appointment does not prevent the making of a further appointment under paragraph 1 (whether at the same time as the revocation, or later).”

“(b)

if the reporting company was appointed under paragraph 4 or 5, the later of—

(i)

the period mentioned in paragraph (a), and

(ii)

the end of the period of 3 months beginning with the day on which it was appointed.”

“Penalty for submission of return where no reporting company appointed

11A

(1)

A company is liable to a penalty if the company has purported to submit to an officer of Revenue and Customs a return for a period of account of a worldwide group in circumstances where it had not been appointed for the period of account at the time at which it submitted the return.

(2)

The penalty is £1,000.

(3)

If a company becomes liable to a penalty under this paragraph, an officer of Revenue and Customs must—

(a)

assess the penalty, and

(b)

notify the company.

(4)

The assessment must be made within the period of 12 months beginning with the day on which a company is (after the time mentioned in sub-paragraph (1)) appointed as the group’s reporting company for the period of account.

(5)

A company may, by notice, appeal against a decision of an officer of Revenue and Customs that a penalty is payable under this paragraph.

(6)

Notice of appeal under this paragraph must be given—

(a)

within 30 days after the penalty was notified to the company,

(b)

to the officer of Revenue and Customs who notified the company.

(7)

A penalty under this paragraph must be paid before the end of the period of 30 days beginning with—

(a)

the day on which the company was notified of the penalty, or

(b)

if notice of appeal against the penalty is given, the day on which the appeal is finally determined or withdrawn.

11B

(1)

Liability to a penalty under paragraph 11A does not arise if, in reliance on paragraph 1A, a company is, at any time up to the end of the period of 18 months after the end of the period of account, appointed as the group’s reporting company for the period of account.

(2)

Liability to a penalty under paragraph 11A also does not arise if—

(a)

without being prompted by an officer of Revenue and Customs to do so, the company notified an officer of Revenue and Customs of the circumstances mentioned in paragraph 11A(1), or

(b)

there is a reasonable excuse for failing to appoint a reporting company before the return was submitted.

(3)

If there is a reasonable excuse for the failure but the excuse has ceased, the excuse is to be treated as having continued if a reporting company is appointed without unreasonable delay after the excuse ceased.”

“(1A)

Sub-paragraph (1) applies even if the company submitting the return had not been appointed as a reporting company for the period of account for which the return was submitted; and references to a reporting company in paragraph 40, and elsewhere in this Schedule where the context is an enquiry into the return, are to the company who submitted the return.”

“(2)

Condition A is that no appointment of a reporting company in relation to the period of account has been made before the end of the period of 12 months beginning with the end of the period of account.”