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13 December 2016

UK publishes draft legislation on restrictions for UK interest deductions

The UK Government published draft legislation on December 5, to implement Action 4 (limiting base erosion involving interest deductions and other financial payments) of the G20/Organisation for Economic Co-operation and Development's (OECD's) base erosion and profit shifting (BEPS) initiative. The draft legislation follows a consultation document on the detailed policy design issued by HM Revenue & Customs (HMRC) and HM Treasury on May 12. A response to the consultation has also been published. The legislation is intended to apply to interest expenses accruing on or after April 1, 2017.

A Tax Alert prepared by Ernst & Young UK, and attached below, provides additional details.

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ATTACHMENT

Full text of Tax Alert 2016-2127

Document ID: 2016-2127

 

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