HMRC is now consulting on simplifying the patchwork of rules concerning the taxation of corporate debt and derivative contracts, with a view to legislating in Finance Bill 2014 and Finance Bill 2015. Whilst there is clearly scope for simplification and improvement of the existing rules, the consultation introduces further potential uncertainty at a time when many corporates have projects underway to cope with changes to the accounting regime caused by the impact of the imminent transition to FRS 101 and FRS 102. Taxpayers and their advisers should get fully involved in the consultation process as early as possible.
