Deny deductions for the general interest charge and shortfall interest charge

The government is consulting on a measure from the 2023–24 Mid‑Year Economic and Fiscal Outlook to deny deductions for general interest charge and shortfall interest charge incurred from 1 July 2025.

Currently all entities can claim a deduction for the:

• General interest charge (GIC) – for late payment of a tax liability
• Shortfall interest charge (SIC) – when incorrect self‑assessment led to a shortfall in tax paid.

The government is seeking views on the effectiveness of the exposure draft legislation (and accompanying explanatory material) implementing this measure.