Adding up the interest

Bill Dodwell provides guidance on what the new rules on corporate interest will mean for large companies 

On 5 December 2016, following extensive consultation, the Government released a response document setting out its decisions on new rules for corporate interest deductibility. This implements Action 4 of the G20/OECD Base Erosion and Profit Shifting (BEPS) project. The new rules will take effect from 1 April 2017 and are expected to raise over £1 billion annually – something like 5% of large company corporation tax.