Taxes Consolidation Act 1997 section 835AAK

Interpretation (Chapter 4)

Section 835AAK defines what constitutes an "interest group" for the purposes of the interest limitation rule and sets out the rules governing the election to form or leave such a group.

• An interest group comprises companies within the charge to corporation tax that are members (or deemed members) of the same worldwide group and that have elected to join the group.
• A company, branch or agency that falls within two interest groups must elect to be treated as a member of one group only.
• The election to join an interest group must be made in a Revenue-specified format, applies for a minimum of three years, and must be filed by the return date for the relevant accounting period.
• An election may be withdrawn after the three-year period, subject to the same minimum duration, format and filing deadline requirements.