Get ready for the change in interest tax relief rules
The European Union are saying we are infringing EU laws and a new restriction is likely in the next Finance Bill, which will increase the cost of financing
Since my last column, the EU Commission declared that it had decided to send reasoned opinions to us (and Austria) “asking” for the transposition into our law of the interest limitation rule required by the EU's Anti-Tax Avoidance Directive (ATAD). This was done as part of its “monthly package of infringement decisions”. To be clear: they’re not “asking”.
This means that tax law will soon restrict the tax relief that companies can take for interest ...