Tom Cartwright reviews the outcomes of the HMRC consultation on possible changes to income tax rules on interest
One of the more surprising and unwelcome consultation documents to follow the 2012 Budget was the document entitled Possible changes to income tax rules on interest issued on 27 March 2012. This had followed a comparatively bland announcement on Budget Day which had given little hint of the smorgasbord of changes to be proposed. These ranged from proposals to provide a regime for the deduction of tax at source from payments of interest included in compensation payments to proposals to abolish the exemption from withholding tax on ‘short’ interest and a severe curtailment of the quoted eurobond exemption where the eurobond was issued to a member of the same group.
On 2 October HMRC...
