HM Gov consultation on tax deductibility of corporate interest expense

ACCA has responded to the consultation by HM Government on the tax deductibility of corporate interest expense.


In the light of current economic uncertainty, arising both as a result of a general slowdown in the global economy and the recent referendum vote to leave the European Union, it is paramount that the UK demonstrates that it remains an attractive location for businesses and its leadership in implementing the G20 and OECD recommendations.

ACCA considers that that the early implementation of OECD BEPS Action 4 may discourage investment at this crucial time. ACCA also strongly urges the Government to reconsider the timing of the proposed interest restriction rules, and explore the viability of other alternatives, such as strengthened thin capitalisation and Worldwide Debt Cap rules.