Policy paper

Making payments of interest or royalties to connected companies in the EU

This guidance is about changes to tax deductions from interest and royalties announced at the Budget on 3 March 2021.

• From: HM Revenue & Customs
• Published: 3 March 2021

Documents

Making payments of interest or royalties to connected companies in the EU

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The purpose of this guidance is to explain the new requirements to deduct tax from some payments of interest and royalties made to companies in EU Member States.

The EU Interest and Royalties Directive ceased to apply to the UK on 31 December 2021. This guidance explains what that means, and what affected companies need to do.

Find out more information in the Repeal of provisions relating to the Interest and Royalties Directive tax information and impact note, explanatory note and draft legislation.

Published 3 March 2021