UK tax forms

Corporate Interest Restriction (CIR) – Interest Restriction Return

Overview

The Interest Restriction Return (IRR) is a set of sheets which can be inserted into a file when the main CIR group calculation sheets are present. The IRR can be developed from the insert menu by selecting the type of return required from the following options:
  • Corporate interest restriction – full interest restriction return
  • Corporate interest restriction – abbreviated interest restriction return
note
Where there is either a restriction or reactivation in the period, only the Corporate interest restriction - full interest restriction return option will be available as a full return must be filed. Where both return types are available, you must ensure that you select the correct return type based upon the calculations within your file.
The software fully supports HMRC’s API submission process and the IRR can be efiled directly with HMRC by the appointed Reporting company. A submission receipt is provided for your records which will be located by selecting the down arrow alongside the
eFile
 menu option and then by selecting
Exports
.

Complete the sheets - full IRR

The full IRR must be developed into a CIR group file for efiling purposes where the full IRR is required. The sheets are largely populated by the relevant information from the main CIR group calculation sheets.
Interest Restriction Return details (full)
This sheet is a copy of the
Interest restriction group details
 sheet in the main CIR group calculation sheets. No data entry is required.
Group elections
This sheet summarises the
Group elections
 sheet within the main CIR group calculation sheets. No data entry is required.
Statement of allocated restrictions / reactivations
This sheet extracts the relevant information from the
UK group companies – values and adjustments
 sheet required for the full IRR.
Where the entity period is non-coterminous with the group period, accounting periods, restrictions, and reactivations are allocated by the software to the relevant accounting period of the CIR group, for example, AP1 or AP2. Data entry cells are provided in the columns AP1 end date override and AP2 end date override to allow a reallocation between AP1 and AP2 if required.
The Consenting company selectors are set to
YES
 by default. Where the company is not a consenting company, change the selector to
NO
. The Consenting company selector must also be changed on the
UK group companies – values and adjustments
 sheet. A validation will fire if the number of consenting companies differs across the 2 sheets.
The QIC election selectors are set to
NO
 by default. Where the company is a QIC, change the selector to
YES
.
Where the
Other group company…
 rows have been used on the
UK group companies – values and adjustments
 sheet for non-NextGen entities, the same data must also be entered manually onto this sheet.
Statement of calculations
This sheet collates the required values from the CIR group calculations. No data entry is required.

Complete the sheets – abbreviated IRR

The abbreviated IRR can be developed into a CIR group file for efiling purposes where a full IRR is not required. The sheets are populated by the relevant information from the main CIR group calculation sheets.
Interest Restriction Return details (abbreviated)
This sheet is a copy of the
Interest restriction group details
 sheet in the main CIR group calculation sheets. No data entry is required.
Group elections
This sheet summarises the
Group elections
 sheet within the main CIR group calculation sheets. No data entry is required.
UK group companies
This sheet extracts the relevant information from the
UK group companies – values and adjustments
 sheet required for the abbreviated IRR. No data entry is required.
The Consenting company selectors are set to
YES
 by default. Where the company is not a consenting company, change the selector to
NO
. The Consenting company selector must also be changed on the UK group companies – values and adjustments sheet. A validation will fire if the number of consenting companies differs across the 2 sheets.
The QIC election selectors are set to
NO
 by default. Where the company is a QIC, change the selector to
YES
.
Where the
Other group company…
 rows have been used on the
UK group companies – values and adjustments
 sheet for non-NextGen entities, the same data must also be entered manually onto this sheet.

Submit the IRR

  1. Select the
    eFile
     button, then select the return to be filed.
  2. Select through the actions using the
    Next
     button entering the relevant credentials where required.
  3. Validate
    1. Prior to submitting the IRR, select
      Validate
       to ensure that the return is complete and correct.
      note
      If any issues arise from the validation these can be corrected by going back to the IRR sheets and re-validating once the issue has been resolved.
    2. A successful validation produces a copy of the submission in JSON format. This can be viewed and downloaded by selecting the down arrow alongside the
      eFile
       button, then
      Exports
      .
  4. File
    1. After validating, select
      File
       to submit the IRR to HMRC.
    2. A successful submission produces a copy of the submission in JSON format and a submission receipt which can both be downloaded for your records. These can be viewed and downloaded by selecting the down arrow alongside the
      eFile
       button, then
      Exports
      .

This article applies to:

  • PRODUCT: ONESOURCE Corporate Tax