Acting together (TT Oct06 p30-33)

Private equity or venture capital-backed investments initially fell outside UK-to-UK domestic transfer pricing legislation introduced in 2004. The government has now reversed this anomaly, and next year sees the end of the grandfathering period. While this does not appear to have slowed the flow of private equity deals, companies – especially those that are highly leveraged – need to consider how the rules will affect their tax deductions.