Loans

Loans guidance:

For more information on the other types of exemptions and reliefs from UK withholding tax that are available, see Practice Note: Exemptions and reliefs from UK...

Practice Note

Secondary debt trading is the activity of one investor purchasing debt on the secondary loan market from another investor, who may have become a lender upon origination...

Practice Note

Syndication In a syndicated transaction, two or more lenders agree to make loans to a borrower on common terms which are set out in a single facility agreement entered...

Practice Note

One of the features used to categorise loans is the number of lenders involved. A loan involving one lender is known as a 'bilateral loan'. A loan involving more than one...

Practice Note

The rules comprising the corporate interest restriction are lengthy and complex. To assist the reader, this Practice Note starts with a background section and a short,...

Practice Note

BREXIT: The UK is leaving the EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on this Practice Note. For guidance, see...

Practice Note

Where a UK payer and an EU recipient (in this Practice Note, the EU recipient is referred to as the EU payee) are 25% associates, the EU payee is not liable to UK income...

Practice Note

Unless an exemption or relief applies, payments of: • yearly interest (or amounts that are treated by tax legislation as payments of yearly interest), and • which have a...

Practice Note

This Practice Note provides a broad overview of the application of the Foreign Account Tax Compliance Act (FATCA) to loan agreements in the United Kingdom (UK). For a...

Practice Note

What is the concept behind the EU FTT? The original Financial Transaction Tax (FTT or ‘Tobin tax’) Directive proposal (published in September 2011) was a very...

Practice Note

This Practice Note outlines the UK rules (referred to in this Practice Note as the hybrid rules) that counteract, for corporation tax purposes, hybrid and other...

Practice Note

A foundational principle of the loan relationships regime is that the profits and losses to be brought into account for corporation tax purposes on a company’s loan...

Practice Note

This Practice Note summarises the key anti-avoidance rules that may apply to restrict the tax deductibility of loan interest for a corporate borrower within the charge to...

Practice Note

Debt which: • qualifies as loan capital (whether it is short or long-term debt), and • satisfies further conditions aimed at ensuring that it is a normal commercial loan...

Practice Note

The general rule is that the credits (broadly, but not necessarily, profits) and debits (broadly, but not necessarily, losses) arising to a company from its corporate...

Practice Note

The general rule is that the credits (broadly, but not necessarily, profits) and debits (broadly, but not necessarily, losses) arising to a company from its corporate...

Practice Note

The rule is that the credits (broadly, but not necessarily, profits) and debits (broadly, but not necessarily, losses) arising to a company from its corporate finance...

Practice Note

This Practice Note: • explains: ◦ the purpose of the tax credit clause that is normally found in a loan agreement, and ◦ that the standard drafting of the tax credit...

Practice Note

It is standard market practice for loan agreements (also known as facility agreements), whether bilateral or syndicated, to: • prohibit a borrower from deducting (or...

Practice Note

This Practice Note: • explains: ◦ the purpose of the tax indemnity clause that is normally found in a loan agreement, and ◦ that the standard drafting of the clause is...

Practice Note

This Practice Note: • outlines the main conditions that must be satisfied in order for a non-UK lender to be eligible for exemption from UK withholding tax on interest...

Practice Note

This Practice Note considers a typical structure that might be used when an overseas group makes an inbound investment into the UK and outlines the key UK tax issues that...

Practice Note

ARCHIVED: This Practice Note has been archived and is not maintained. With effect from 1 April 2017, the worldwide debt cap rules have been repealed and replaced by the...

Practice Note

ARCHIVED: This Practice Note has been archived and is not maintained. With effect from 1 April 2017, the worldwide debt cap rules have been repealed and replaced by the...

Practice Note

ARCHIVED: This Practice Note has been archived and is not maintained. With effect from 1 April 2017, the worldwide debt cap rules have been repealed and replaced by the...

Practice Note

Unless an exemption or a relief applies, a payment of yearly interest arising in the UK (ie with a UK source) is generally subject to UK withholding tax at the basic rate...

Practice Note

Unless an exemption or a relief applies, a payment of yearly interest arising in the UK (ie with a UK source) is generally subject to UK withholding tax at the basic rate...

Practice Note

Overdrafts, term loans and revolving credit facilities Three common types of loan facility are: • overdrafts • term loans, and • revolving credit facilities (RCFs) An...

Practice Note

A UK corporate borrower will need to consider the following tax issues when borrowing from an overseas lender: • UK withholding tax, including: ◦ the lender’s ability to...

Practice Note

Unless an exemption or a relief applies, a payment of yearly interest is subject to UK withholding tax at the basic rate (currently, 20%) if made by: • a company (unless...

Practice Note