UK Taxation of Securitisation Companies – a regime in need of reform?
6 May 2021
Gide Client Alert | UK | Banking & Finance | Tax
The special rules (‘securitisation regime’) under which a cashflow (rather than accounts) basis of taxation applies to the retained profit of a securitisation company were introduced in 2006. Changes made to the regime over the intervening fifteen years have been relatively incremental. However, on 23 March 2021, HM Treasury and HM Revenue and Customs (HMRC) fired the starting gun on a consultation that will run until 3 June 2021.
This consultation, the outcome of which is expected to be revenue neutral for the Exchequer, raises the possibility of reform in four separate areas which we have summarised in this Client Alert in order of what we anticipate ought to be their commercial significance.
Click on the PDF below to read the Client Alert in full.