U.K. Consults on Interest Expense Deduction and Patent Box Rules based on Outcomes of the OECD BEPS Project

On 22 October 2015, the UK HMRC launched two public consultations, including on bringing interest expense deduction rules in line with the outcome of Action 4 of the OECD BEPS Project and bringing the patent box regime in line with Action 5 of the BEPS Project. The UK agrees with the recommendations developed under the BEPS Project and has launched the consultations to obtain input on how to best implement the needed changes.

Interest Expense Deductions

The basic recommendation of BEPS Act…