It’s Budget Day and we’re gearing up for what is expected to be one of the most politically charged Budgets in recent years. The CMS Tax Team will be blogging during the day. The Blog is interactive so do let us have your comments.
The Chancellor’s announcements may include:
• extension of corporation tax to non-UK resident companies; will this apply only to UK rental and trading income already charged to income tax or wider categories of income and gains?
• capital gains tax liability for non-residents selling UK commercial property; a potentially popular move but one which successive chancellors have resisted in the interests of encouraging inward investment;
• measures to help Generation Rent, first time property buyers – possibly SDLT exemption;
• possible mitigation of George Osborne’s SDLT increase and interest restriction measures targeting buy-to-let landlords;
• changes to entrepreneurs’ relief, Enterprise Investment Scheme and other venture capital reliefs in light of the Patient Capital Review;
• possible consultation on measures to increase tax revenues from the digital economy;
• Oil and Gas: allowing the tax history of North Sea assets to be transferred from sellers to buyers, mitigating the effective cost of decommissioning for buyers of late-life assets;
• transfer pricing: introduction of secondary adjustments deeming excess payments to be loans at interest;
• extension to the private sector of the personal service company provisions affecting public sector clients;
• changes to the tax treatment of the self-employed, bringing their NICs burden closer in line with that of employees (despite the abortive attempt to do this in the Spring Budget)
• other measures to prevent tax leakage through the so-called “gig economy”;
• changes to the tax treatment of partnerships, authorised investment funds, unit trusts and offshore funds
• reduction in the VAT registration threshold and changes to VAT grouping rules.
The Speech will start at 12.30 and details of tax announcements are generally published shortly after the Chancellor finishes speaking.