The government has tightened tax rules around debt restructuring, in a move
that could be aimed at banks’ gains from the transactions.
Companies that buy back debt at a discount will have to recognise any profit
on the transaction immediately.
Banks and other major companies have bought back debt due to the price
available in a depressed market.
back £14.8bn of debt in March, which resulted in a pre-tax gain of £4.6bn.
One lawyer said: “The banks are in their sights.”
said the change in policy would only affect companies being rescued, and the
transaction was being undertaken where there was no commercial justification, in
order to avoid tax.
Report argues that the government must change the way it makes tax and budget decisions
Committee expresses concern about costs to businesses and April 2018 implementation date
Andrew Tyrie airs views on the Finance Bill, 'Making Tax Policy Better' report, and Brexit
Top 25 firm HW Fisher & Co has acquired London firm Rhodes & Rhodes