Autumn Statement 2016 - Changes to the Tax Deductibility of Interest Expenses

    View Author November 2016

    The UK government is clearly keen to be ahead of the pack in implementing the G20 and OECD recommendations on interest deductibility. In the Autumn Statement, the Chancellor announced that the government will proceed with its planned implementation date of 1 April 2017.

    This is despite widespread concern that such rapid enactment will cause significant difficulties for businesses, leaving little or no time for effective structuring to cater for the changes.

    The changes represent a fundamental change to the UK taxation of debt which is likely to have a considerable effect on capital intensive sectors including highly geared energy and infrastructure projects.