Consultation outcome

Tax deductibility of corporate interest expense

• From: HM Treasury, HM Revenue & Customs, and The Rt Hon David Gauke
• Published: 22 October 2015
• Last updated: 5 December 2016 — See all updates

This consultation has concluded

Download the full outcome

Tax deductibility of corporate interest expense: response to the consultation

Ref: ISBN 978-1-911375-44-9, PU2013

PDF, 425 KB, 42 pages

Detail of outcome

To prevent large businesses from using interest expense to erode the tax base, the government is introducing rules to limit the tax deductions that large businesses can claim for their interest expense in the UK, effective from 1 April 2017. The new interest restriction rules will be consistent with the OECD’s best practice recommendations set out under Action 4 of the Base Erosion and Profit Shifting (BEPS) Project.

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Original consultation

Summary

Seeking views on the detailed policy design and implementation of new rules on the tax deductibility of corporate interest expense.

This consultation ran from
11am on 22 October 2015 to 11:45pm on 4 August 2016

Consultation description

Following initial consultation on the Organisation for Economic Co-operation and Development’s recommendations, the government announced key policy design features for a restriction on the tax deductibility of corporate interest expense at Budget 2016 and in the Business tax road map.

The government is now seeking views on the detailed policy design and implementation of the new rules. This consultation is open until 4 August 2016 and the government will consider responses in the drafting of the legislation for Finance Bill 2017.

Documents

Tax deductibility of corporate interest expense: consultation on detailed policy design and implementation

Ref: ISBN 978-1-910835-98-2, PU1945

PDF, 1.78 MB, 92 pages

Tax deductibility of corporate interest expense: consultation (October 2015)

HTML

Notes and slides from HM Treasury/HMRC stakeholder event

PDF, 358 KB, 21 pages

Published 22 October 2015
Last updated 5 December 2016 + show all updates

1. 5 December 2016

   Consultation response published.

2. 26 May 2016

   updated list of respondents

3. 12 May 2016

   Second stage of consultation published

4. 6 January 2016

   Added slides and notes from HMT/HMRC stakeholder event

5. 22 October 2015

   First published.