BEPS 4 – Corporate Interest Deductibility

BEPS 4 – Corporate Interest Deductibility

In October 2015 the UK Government published their proposals for new legislation to implement the recommendations of the OECD’s Base Erosion and Profit Shifting (“BEPS”) project.

Also on

Following a consultation process, the Government published a revised set of proposals on 12 May 2016.  They have invited comments on the proposals by the deadline of 4 August 2016. It is expected that the Government will publish draft legislation following the 2016 Autumn Statement and then final legislation within Finance Bill 2017. 

Although the aim of BEPS has been to target the multinational groups perceived as using cross-border tax structuring to reduce their taxable profits, the proposed UK law will, in principle, apply to all taxpayers. However, there is a de minimis group threshold of £2m net UK interest expense so, subject to other interest deductibility rules, the first £2m of interest payable will be treated as deductible.

Read more about the proposals and next steps in M&A Matters. 

For further information please contact: 

Naz Klendjian


T: +44 20 7311 6509


M&A Tax Matters Archive

M&A Tax Matters focuses on topical issues impacting transactions. Read the latest edition

Read more

M&A Matters

This new format of M&A Matters incorporates the usual tax updates with a broader review of M&A insights.

Read more

Connect with us


Request for proposal



KPMG’s new-look website

KPMG’s new-look website