Market leading insight for tax experts
View online issue

Corresponding adjustments: some government concessions

Natasha Kaye has good news and bad news

There is good and bad news on the vexed issue of corresponding adjustments for individuals. The bad news is that the harsh new restrictions have been introduced with immediate effect from 25 October. The good news is that the government has listened to some of the arguments made during the consultation and removed a couple of the more punitive elements.

Although existing arrangements are not ‘grandfathered’ the removal of corresponding adjustments will not apply to amounts accrued in respect of periods prior to 25 October 2013. This had been a major concern as interest on junior debt in private equity financed companies often rolls up for several years before payment.

The other change relates to excess leverage. Interest in excess of the arm’s length amount will...

If you or your firm subscribes to Taxjournal.com, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
EDITOR'S PICKstar
Top