Clause 31 - Tax treatment of financing costs and income

Part of Finance Bill – in a Public Bill Committee at 6:30 pm on 12 June 2012.

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Photo of Ian Swales Ian Swales Liberal Democrat, Redcar 6:30, 12 June 2012

I will return to a point I raised earlier because it is more relevant to this clause. Does the Minister believe that these provisions will make it less likely that essentially UK-based companies will move their debt to jurisdictions such as Luxembourg, thereby lowering their tax bill through interest payments to what is actually a related company, with the interest receipts being taxed at the lower level in the country concerned? That practice has been highlighted in the media recently.