UK Publishes Draft Legislation on Corporate Interest Restrictions and Relief for Carried-Forward Losses

UK HMRC has published draft legislation for provisions that will form part of the Finance Bill 2017 concerning corporate interest restrictions and relief for carried-forward losses.

Corporate Interest Restrictions

This legislation introduces a restriction on the amount of interest and other financing amounts that a company may deduct in computing its profits for Corporation Tax purposes. Interest deductions will be limited using a recommended Fixed Ratio Rule or an optional Group Ratio Rul…