Policy paper

Income Tax: debt traded on a multilateral trading facility

This measure changes the requirements on debt issued on a multilateral trading facility (MTF) operated by an EEA-regulated stock exchange.


Draft legislation: debt traded on a multilateral trading facility

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This measure removes the requirement to withhold tax on interest for debt issued on a MTF operated by an EEA-regulated stock exchange by extending an existing exemption.

The measure also widens the definition of alternative finance investment bonds (AFIB) - these are Shari’a-compliant financial instruments also known as ‘sukuk’ - to include securities admitted to trading on such an MTF. Under tax rules, such issues are treated as debt, and the return on them as interest for certain tax purposes.

Published 13 September 2017