Consultation on the taxation impacts arising from the withdrawal of LIBOR
We welcome views on the tax issues arising from the reform of LIBOR (London Inter-bank Offered Rate) and other benchmark rates.
This consultation was published on 19 March and was due to close on 28 May. We are grateful for the responses we have already received. The government recognises that many sectors with an interest in this policy are affected by COVID-19. We want to give all stakeholders time to submit their views, so we have extended the consultation. The closing date is now 28 August (11.45pm). However, we encourage early responses from stakeholders, where possible, to support our ongoing consideration of this policy.
The publication of LIBOR is expected to cease after the end of 2021 and parties to financial instruments will need to transition to alternative reference rates.
HMRC has identified several statutory references to LIBOR that need amending as a result of this withdrawal and is seeking views on how this should be done.
In addition, the consultation aims to ensure HMRC fully understands the significant tax impacts that could arise from the reform of LIBOR and other benchmark rates.