The UK Government has published draft legislation that would make technical amendments to the country’s corporate interest restriction rules to ensure the corporation tax regime works as intended.
The UK corporate interest restriction rules were enacted in Schedule 5 of the 2017 Finance Act; however, certain technical amendments to the legislation have been newly identified following further engagement with affected businesses.
The Government said that legislation would be introduced in the 2018-19 Finance Bill to make key technical amendments in this area to allay concerns. The corporate interest restriction rules are incorporated in Part 10 of Taxation (International and Other Provisions) Act, 2010.
The amendments would have effect for periods commencing January 1, 2019.