The Finance Bill 2014 contains a double tax relief anti-avoidance provision that limits double tax relief on loan relationship, derivative and intangible fixed asset non-trading credits to the UK tax payable on the net, rather than gross, income. The net income is calculated after deducting debits which are in respect of the same loan relationship, derivative or intangible fixed asset as the non-trading credit. Concerns have already been voiced to HMRC that the wording of the draft legislation is too wide and may limit claims to double tax relief in circumstances that do not appear to be intended.
