INTM541005 - Introduction to thin capitalisation (legislation and principles)

The importance of 1 April 2004

When considering the principles of the legislation that apply to thin capitalisation (see INTM541010 for a working definition of thin capitalisation), it is important to appreciate that 1 April 2004 is an important date, marking a significant change in the legislation. Up to 31 March 2004 the legislation at ICTA88/S209(2)(da) applied, but from 1 April 2004 it was repealed and the revised ICTA88/SCH28AA applies. See INTM560000 onwards for a more detailed consideration of the changes in Finance Act 2004.