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Norfolk and Montagu on the Taxation of Interest and Debt Finance

Gerald Montagu, Felicity Cullen QC, and E.C.D. Norfolk

ISBN: 9781845928537

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Publication Date: August 2022

Publisher: Bloomsbury Professional

Law As Stated At: 24 February 2022

Norfolk and Montagu on the Taxation of Interest and Debt Finance

Norfolk and Montagu on the Taxation of Interest and Debt Finance

Norfolk and Montagu on the Taxation of Interest and Debt Finance provides an authoritative, pragmatic and accessible guide to the taxation treatment of interest and debt finance for both individuals and companies.

Continually reviewed to ensure that the content is accessible and up to date, the text offers unprecedently broad and deep integrated coverage of both the law and accounting practice and as they stand today and have stood in previous years.

The text has also been expanded, in recent years, to offer thematic commentary on the approach taken by the courts to 'deeming' provisions, 'purpose' tests, ‘beneficial ownership’, ‘ordinary share capital’, and the meaning of 'payment', providing an unique and invaluable resource for solicitors, barristers, accountants and all tax practitioners whether working 'in house' or in private practice.

Which key topics are covered?

The wide range of topics covered in this text include:

  • what constitutes interest
  • whether interest is yearly and payable subject to withholding;
  • reporting obligations under FATCA and the CRS;
  • income tax, capital gains tax and corporation treatment of financing arrangements (including Shari'a arrangements);
  • IFRS GAAP and UK GAAP relevant to the corporation tax treatment of financing arrangements;
  • interest restriction and hybrid mismatch rules;
  • the taxation of employment-related and close company loans;
  • special regimes: e.g. P2P lending, the taxation of securitisation companies and QHACs
  • stamp tax, IHT, CGT and VAT treatment of interest and loans;
  • interest on underpaid and overpaid tax;
  • the taxation of repurchase and stock lending arrangements; and
  • HMRC's Code of Practice on Taxation of Banks, the Bank Levy (as rescoped from 1 January 2021) and the Bank Surcharge.

What have recent releases covered?

Recent releases have covered a multitude of topics, including:

  • the Finance Act 2022;
  • the Supreme Court's decision in HMRC v Coal Staff Superannuation Scheme ([2022] UKSC 10);
  • the First-tier Tribunal’s taboo breaking decision on the meaning of ‘unallowable purpose; in JTI Acquisition Company (2011) Limited v HMRC[2022] UKFTT 00166 (TC) and numerous other recent important decisions including: GE Financial Investments v HMRC[2021] UKFTT 0210 (TC), Hugh Murphy and Windfred Linnett v HMRC[2021] EWHC 1914 (Admin), West Burton Property Limited v HMRC [2021] UK FTT 160 (TC), Shinelock Limited v Commissioners for HMRC[2021] UKFTT 320 (TC), Thomas William Good v HMRC[2021] UKUT 281 (TCC), Hargreaves Property Holdings Limited v HMRC[2021] UKFTT 390 (TC), Szef Krajowej Administracji karbowej v O. Fundusz lnwestycyjny Zamknięty reprezentowany przez O S.A. (Case C‐250/21).
  • OECD guidance on the transfer pricing of financing arrangements (February 2020);
  • Protocol to the June 2022 UK/Luxembourg double tax treaty;
  • updating of the entire text to reflect changes to statutory terminology linked to Brexit; and
  • measures taken by HMRC, the IASB and the PRA in response to the Covid-19 pandemic.

What will forthcoming releases cover?

Future releases will cover the Finance Act 2023 and future case law developments.

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