Policy paper

Income Tax: debt traded on a multilateral trading facility

This measure changes the requirements on debt issued on a multilateral trading facility (MTF) operated by an EEA-regulated stock exchange.

• From: HM Revenue & Customs and HM Treasury
• Published: 13 September 2017

This was published under the 2016 to 2019 May Conservative government

Documents

Income Tax: debt traded on a multilateral trading facility

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Draft legislation: debt traded on a multilateral trading facility

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Explanatory note for debt traded on a multilateral trading facility

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Details

This measure removes the requirement to withhold tax on interest for debt issued on a MTF operated by an EEA-regulated stock exchange by extending an existing exemption.

The measure also widens the definition of alternative finance investment bonds (AFIB) - these are Shari’a-compliant financial instruments also known as ‘sukuk’ - to include securities admitted to trading on such an MTF. Under tax rules, such issues are treated as debt, and the return on them as interest for certain tax purposes.

Published 13 September 2017