United Kingdom: Restriction on Interest Deductions
As part of Finance Bill 2017, the UK published legislation restricting the deductibility of corporate interest payments. Under the new rules, all groups will be able to deduct £2m of net interest. Amounts above this will be restricted to the lower 30% of tax-adjusted EBITDA and the group’s worldwide interest expense. Introducing these rules is consistent with the OECD proposals on BEPS.