INTM571040 - Thin capitalisation: practical guidance - introduction: Getting help with thin capitalisation cases
Thin capitalisation is a very practical subject, so experience in working cases and confidence in one’s abilities to analyse and understand complex businesses both play an important part in handling a case successfully; each case must be approached according to its own facts, with a degree of commercial awareness. It is also important to recognise the point at which specialist help is needed, and there are pointers in this module as to where and when help might prove useful (or in some cases obligatory). Thin cap cases are likely to be worked or supervised by a member of the Transfer Pricing Group (TPG) or an International Issues Manager (IIM), in either Local Compliance or the Large Business Service. The TPG is organised in centres of expertise around the country, while the IIMs have a similar network. They have their own intranet sites with lists of contacts.
It is less likely now than in the past that the transfer pricing specialists at Business International will be closely involved in a particular case, except in the largest and most complex cases, or where it involves novel or difficult challenges. However, the team is available to help, particularly where an unorthodox feature presents itself. See INTM572030 and INTM572035 for details about the type of cases in which the team is particularly interested.
The Transfer Pricing Team is part of the Business International Directorate, working alongside other international specialists. The team also works closely with loan relationships, financial services and avoidance specialists within CT&VAT and the Anti-Avoidance Group.
The team has the responsibility for ensuring that HM Revenue & Customs’ application of the thin capitalisation legislation is consistent, correct, and responsive to changes and challenges. It can only do this successfully if it is aware of the issues and challenges emerging from the practical application of the legislation and processes.
The transfer pricing team is organised according to business sectors, to serve as specialist advisors for both financial and goods/services transfer pricing in their particular fields.
The International Glossary, is being merged into the Corporate Finance Manual glossary, due to the high degree of overlap.