The government plans to renew and extend the administrative simplifications of the Double Taxation Treaty Passport scheme to assist foreign lenders and UK borrowers and encourage inward investment
The measure is designed to make it easier for businesses to raise finance and simplifies access to reduced withholding tax rates on interest that are available within the UK’s tax treaties with other countries.
It will also introduce an exemption from withholding tax for interest on debt traded on a multilateral trading facility, removing a barrier to the development of UK debt markets.
The government will consult in spring 2017 on implementation of the exemption.