Clause 35
Finance Bill
12:45 pm
Stephen Timms (Financial Secretary, HM Treasury; East Ham, Labour)
In the previous clause we discussed the dividend exemption—the cornerstone of this package—and the benefits to business of its introduction. The dividend exemption will come at a cost of tax forgone and could also lead to multinational groups taking undue advantage of those generous UK interest relief rules referred to by the hon. Member for Fareham. Clause 35 in schedule 15 introduces a limited restriction on the deductibility of interest in computing taxable profits.