Our Tax Expert Group contributed to our response to HMRC's consultation on an exemption from withholding tax on interest for debt traded on Multilateral Trading Facilities (MTFs).
We welcomed HMRC's proposals as an important step in encouraging the development of MTFs in the UK and boosting their competitiveness with other jurisdictions already offering such an exemption. We noted that it would provide smaller companies with another source of raising affordable capital that can help fund their growth and development.
We commented that the proposals would level the fiscal playing field by offering an efficient admission to trading process. This would attract more issuers to UK MTFs. We added that the measure would also simplify the tax system and maintain the appropriate regulatory standards.