The draft UK Finance Bill 2017 was published in early December 2016. The Bill contains detailed draft legislation to introduce a new limitation on the deductibility of interest expense from corporate profits. These rules, which were further amended on January 26, 2017, will apply to amounts accruing after April 1, 2017. The rules limit a UK group’s ability to deduct interest from taxable profit, to the lesser of a defined percentage of taxable EBITDA and the group’s worldwide consolidated net interest expense.
This will significantly restrict the ability of many groups to offset UK net interest expense against UK taxable profits.
More information can be found here.
