[CFM98330] CFM98330 – Interest restriction: commencement rules: repeal of Worldwide Debt Cap
The Corporate Interest Restriction rules replace the existing Worldwide Debt Cap rules. The Worldwide Debt Cap rules therefore cease to have effect for periods of account starting on or after 1 April 2017.
If a worldwide group draws up financial statements for a period that straddles 1 April 2017 then the Worldwide Debt Cap rules will cease to apply on the basis that the group has two notional periods of accounts as follows -
•a period of account beginning when the actual period of account starts and ending with the 31 March 2017;
•a period beginning with 1 April 2017 and ending when the actual period of account ends.