Withholding tax exemption for debt traded on a Multilateral Trading Facility

At Spring Budget 2017, the government announced its intention to introduce an exemption from withholding tax on interest for debt traded on Multilateral Trading Facilities (MTF), in order to make UK wholesale debt markets (that is, those focused on institutional investors) more competitive. The government also announced a consultation on the detailed implementation of the change.

This consultation sets out an outline proposal, and we are now seeking views from interested parties, including exchanges, potential debt issuers and investors, and their arrangers and advisers, to ensure the design of this exemption is as effective as possible and without unintended effects.