In the long run, the tax breaks that fuel the entire industry – offsetting interest payments against tax – need to be phased out. It is a sector that has done more to degrade contemporary capitalism than any other. We need more public companies publicly accountable to shareholders and the public, and less indulgence of the indefensible. Britain should not be putting a Brexit deal at risk to save them.
If interest is taxed at the corporate level then it will become untaxed at the investor. Or, of course, it will be double taxed. How’s Willy going to like the optics of the rentier being untaxed?