Policy paper
Corporation Tax: tax deductibility of corporate interest expense
This tax information and impact note reduces the extent to which interest payments can be used to erode the UK tax base, raising around £1billion additional tax annually.
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This measure is to reduce the extent to which interest payments can be used to erode the UK tax base, raising around £1 billion additional tax annually. It is in line with the OECD Base Erosion and Profit Shifting Project recommendations.
A consultation on the corporate interest restriction has been carried out.
Draft regulations for this measure have also been published. The final legislation was included in schedule 10 of the Finance (No. 2) Bill 2017.
You can find out more about the corporate interest restriction rules by reading the draft guidance.
Published 5 December 2016