HMRC has issued a consultation document on changes to the income tax rules on interest. The main changes under consultation are:Yearly interest - removing the concept of "yearly interest" from the
HMRC has issued a consultation document on changes to the income tax rules on interest. The main changes under consultation are:
Yearly interest - removing the concept of "yearly interest" from the withholding tax legislation;
Quoted Eurobonds - abolishing the quoted Eurobond exemption where the bond has been issued to a company in the same group as the issuer, and is listed on a stock exchange where there is no substantial or regular trading in the bond; and
Disguised interest - introduction of an anti-avoidance rule aimed at addressing interest-like returns which are not taxed as income. Examples include structured products such as certain derivative contracts, warrants, zero coupon bonds or zero rate preference shares.
The closing date for comments on the Consultation is 22 June 2012.
Yearly interest - removing the concept of "yearly interest" from the withholding tax legislation;
Quoted Eurobonds - abolishing the quoted Eurobond exemption where the bond has been issued to a company in the same group as the issuer, and is listed on a stock exchange where there is no substantial or regular trading in the bond; and
Disguised interest - introduction of an anti-avoidance rule aimed at addressing interest-like returns which are not taxed as income. Examples include structured products such as certain derivative contracts, warrants, zero coupon bonds or zero rate preference shares.
The closing date for comments on the Consultation is 22 June 2012.