LMA welcomes UK Government's announcement of a new withholding tax exemption in respect of private placements04 December 2014
The LMA welcomes the announcement by the UK government contained in yesterday's Autumn Statement of a new targeted tax exemption from withholding tax for interest on private placements.
The LMA is pleased to note the UK government's recognition of private placements as a debt product in their own right, as well as its commitment to encouraging the provision of longer-term finance by non-bank investors generally.
Clare Dawson, Chief Executive of the LMA said:
"Following close consultation with LMA members and other interested parties, we are in the process of finalising template loan and bond documentation for use in private placement transactions, in an attempt to unlock new sources of liquidity and encourage new issuers and investors to the market. The recent announcement by the UK government provides further recognition that private placements have the potential to become a key debt product in the portfolio of many non-bank investors and an important funding source for borrowers."
"We hope to work alongside both HMT and HMRC going forward, so as to fulfil our mutual objectives of removing any barriers to entry for both investors and borrowers, and creating a fully functioning private placement market."