BUZZ-UK Budget: Liberum latest to warn of interest tax change

** Liberum latest broker to warn a possible change in the way UK allows cos to claim tax breaks could hit highly-levered stocks

** Government looking to cap tax breaks from interest payments on debt at 10-30 pct of EBITDA. Link: http://bit.ly/1MgJSoO

** Liberum screens for stocks with the highest ratio of interest payments to EBITDA - Punch Taverns (Other OTC: PCTVF - news) and Enterprise Inns (LSE: ETI.L - news) both have interest costs over 50 pct of 2016 EBITDA, with rest of the pub sector also likely to be affected. Chart: http://reut.rs/1RjLvhR

** Utilities and retailers also among UK stocks with > 20 pct interest/EBITDA ratios

** Broker says REITs and financials likely to be exempt

** Adds any rule change also likely to indirectly affect private equity firms with significant UK exposure - 3i, Electra (Tel Aviv: ELTR.TA - news) and Intermediate Capital (LSE: ICP.L - news) all mentioned

(RM (LSE: RM.L - news) : alasdair.pal.thomsonreuters.com@reuters.net)