UK withdraws proposals to restrict withholding tax exemption for Quoted Eurobonds

HMRC has withdrawn proposed changes to the quoted Eurobond withholding tax exemption. In addition, HMRC confirmed that it will retain references to 'yearly' interest such that withholding tax should not apply to interest payments on short-term debt. This welcome response from HMRC should further entice multinationals (MNCs) to consider the United Kingdom as a place to do business. This newsalert summarizes these developments.