Home / Tax / Companies and corporation tax / Loan relationships

Legal News

Draft Finance Bill 2016—taxation of corporate debt and derivative contracts

Copyright © 2025 LexisNexis

Published on: 29 January 2016

Published by a LexisNexis Tax expert

Table of contents

Original news
What changes will the Finance Bill 2016 make to the rules for the taxation of corporate debt and derivative contracts?
Broadly, what is the aim of making these changes? Will they achieve those aims?
These three changes come at the back end of the process to update the UK’s debt and derivative rules that has taken almost three years—is this the end?
Where do we stand now? Has the process met the aims set out in the 2013 consultation?
How should impacted taxpayers and their advisers be preparing for the introduction of the new rules?

Article summary

Tax analysis: Jeremy Cape, partner, and Julian Feiner, associate, at Dentons consider changes to taxation of corporate debt and derivative contracts contained in the Finance Bill 2016.

Popular documents

Priority between loss reliefs in loss making companies

Priority between loss reliefs in loss making companiesWhy does it matter?A company that is a member of a group and has incurred any of the types of losses available for surrender by way of group relief may, without any further rules, have more than one way in which to use the loss. There are a

Taxation of derivatives—chargeable gains basis rules

Taxation of derivatives—chargeable gains basis rulesThe general rule, as explained in Practice Note: Taxation of derivatives—the main rules, is that the profits and losses arising to a company from its derivative contracts are (like the profits and losses from its loan relationships) brought into

Capital gains—intra-group asset transfers

Capital gains—intra-group asset transfersCompanies which form a group for capital gains purposes are able to transfer assets to one another free of corporation tax on chargeable gains.Each company is a separate legal person for tax purposes meaning that, in the absence of a special rule, an

Distribution key concepts—repayment of capital

Distribution key concepts—repayment of capitalAlongside the concept of new consideration, which is further explained in Distribution key concepts—new consideration, the concept of repayment of capital is vital in determining whether certain transactions are distributions.At the broadest level the