Robin Walduck, Tax Partner at KPMG, comments on changes to interest relief.
Commenting on changes to interest relief announced in today’s Budget, Robin Walduck, Tax Partner at KPMG in the UK, said:
“The announcement by the Government today in relation to interest relief demonstrates their ongoing commitment to the OECD’s BEPS process. The decision to include a Group Ratio Rule will be welcomed by business, as there was concern that the Fixed Ratio Rule would be introduced in isolation. This confirmation will reinforce the ‘open for business’ message.”
From 1 April 2017, interest relief will be as follows (with consultation following later this year):
“The current broad interest relief rules are a key component of the UK tax system and the Government will need to consult carefully and extensively with business to ensure that the changes are introduced in a manner that does not distort the UK’s competitive position in the international market. There is unfortunately no comment at this stage as to how the rules will be applied in the financial services industry, which will hopefully become clear when the consultation is published later in the year.”
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