‘Plans to tighten the tax treatment of non-traded eurobonds – bonds sold outside the country of the currency of their denomination – have been dropped, in a reprieve for some private equity groups and holding companies. HMRC said it would not go ahead with a plan to withdraw a tax exemption in cases where inter-company debt was converted into quoted eurobonds to escape charges on interest payments.
‘The Revenue had proposed tightening the rules on eurobonds issued to another company in the same group and listed on a stock exchange in places such as the Channel Islands and Cayman Islands where they were not actually traded.’
‘Plans to tighten the tax treatment of non-traded eurobonds – bonds sold outside the country of the currency of their denomination – have been dropped, in a reprieve for some private equity groups and holding companies. HMRC said it would not go ahead with a plan to withdraw a tax exemption in cases where inter-company debt was converted into quoted eurobonds to escape charges on interest payments.
‘The Revenue had proposed tightening the rules on eurobonds issued to another company in the same group and listed on a stock exchange in places such as the Channel Islands and Cayman Islands where they were not actually traded.’
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