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 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; - the taxation of employment-related and close company loans (including the disguised remuneration rules and the April 2019 loan charge); - P2P lending; - stamp tax, IHT, CGT and VAT treatment of interest and loans; - interest on underpaid and overpaid tax; - the Bank Levy (as rescoped from 1 January 2021) and the Banking Surcharge; - the taxation of repurchase and stock lending arrangements; and - HMRC's Code of Practice on Taxation of Banks.
What have recent releases covered? Recent releases have covered a multitude of topics, including:
- HMRC's updated (December 2019) guidance to the hybrid mismatch rules; - the Finance Act 2020; - the Corporate Insolvency and Governance Act 2020; - the Court of Appeal's decisions in HMRC v Smith & Nephew Overseas Limited ( EWCA Civ 299) and Union Castle Mail Steamship Company Limited v HMRC ( EWCA Civ 547); - the Supreme Court's decision in Fowler v Commissioners ( UKSC 22); - recent international case law on the meaning of 'beneficial ownership'; - OECD guidance on the transfer pricing of financing arrangements (February 2020); 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 HMRC's DAC 6 guidance, Brexit-related amendments coming into force on Implementation Day (1 January 2021) and the Finance Act 2021.
When should you consult this resource? The expert advice within this text is invaluable in a wide range of day-to-day scenarios, such as:
- determining whether interest has a UK source or whether a compensation payment could be subject to withholding tax; - advising a private client from an income tax, CGT or IHT perspective in relation to a borrowing or debt investment; - determining whether a financing arrangement is disclosable under DOTAS or DAC 6; - - identifying reporting obligations under FATCA or the CRS. - planning how to raise funds for a particular project or business; and/or - restructuring the borrowings of a company or a group of companies.
Read an extract of Norfolk and Montagu on the Taxation of Interest and Debt Finance