28 May 2013

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UK withholding tax – new HMRC proposal to significantly restrict exemptions

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Today HMRC launched a consultation on the UK Income Tax treatment of interest, with particular focus on withholding tax.  This is relevant for UK companies which pay interest and other companies paying interest which has a UK source, but will be particularly significant for UK companies paying interest overseas and to UK companies which currently take advantage of the Quoted Eurobond exemption.  Changes are also proposed to the PIK Note rules.

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