News Story

HMRC propose changes to Corporate Interest Restriction rules

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The BVRLA has responded to a recent HMRC consultation calling for amendments to the Corporate Interest Restriction (CIR) rules to ensure that they are aligned to the new lease accounting standard, IFRS16.

At present, the finance cost or finance income element of rental payments under a lease, which is a method of providing finance, are recognised as tax-interest within the Corporate Interest Restriction (CIR) rules.

The current CIR rules consider whether a lease is an operating lease or finance lease, when determining the tax position. However, as the new lease accounting standard, IFRS16 will not classify leases in this way the consultation is inviting comments.

The BVRLA’s response to the consultation can be read in full here.