Tax issues for banking lawyers

This overview is a guide to the Banking & Finance content within the Tax issues for banking lawyers subtopic, with links to appropriate materials.

Tax resources for banking lawyers

While this overview provides a guide to the Banking & Finance content in relation to taxation issues in banking and finance, the Tax module provides more detailed and extensive materials.

Withholding tax

UK withholding tax

Withholding tax is a method of collecting tax at source from the person who makes the payment (as opposed to collecting it from the recipient of the payment). It is an efficient way for tax authorities such as His Majesty's Revenue and Customs (HMRC) to collect tax as the person making the payment has the administrative burden of:

  1. withholding the appropriate amount of income tax from the payment, and

  2. accounting for such tax to HMRC

Under UK law, where a payment of yearly interest has a UK source, an amount equal to the basic rate of income tax (currently 20%) must be withheld from the payment and paid to HMRC, unless an exemption applies.

There are a number

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Powered by Lexis+®
Latest Banking & Finance News

ISDA and FIA respond to CPMI-IOSCO consultation on FMI general business losses

The International Swaps and Derivatives Association (ISDA) and Futures Industry Association (FIA) have submitted a joint response to the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) consultation on the management of general business risks and general business losses by financial market infrastructures (FMIs). The associations supported the principle that infrastructures should maintain sufficient resources to absorb losses for which they are solely responsible, as these losses arise from risks within their control and should not be allocated to participants. They welcomed a more prescriptive approach, noting that previous international assessments identified significant inconsistencies and gaps in existing practices. ISDA and FIA called for clearer and more consistent standards for identifying loss scenarios, determining the size of liquid net assets funded by equity, and setting expectations for transparency, governance and stakeholder engagement. They recommended increasing the minimum equity-funded resource requirement beyond six months of operating expenses, adopting common scenario standards across infrastructures, improving disclosure of risk management assumptions and available resources, and conducting post-guidance assessments to support global convergence. The associations also reiterated their opposition to the use of variation margin gains haircutting to cover general business losses, citing its misalignment with the nature of such losses and its potential to undermine market stability.

View Banking & Finance by content type :

Popular documents