All posts by Mark Joscelyne, Tax Partner, CMS

Today’s Budget was fairly thin both on detail and on new announcements. In addition to a small number of new measures, most of the Chancellor’s announcements were minor adjustments to measures which had been announced in the Autumn Statement or the subject of consultation. We await more detail over the next couple of weeks and … Continue reading Spring Budget: corporate tax announcements

The Chancellor has confirmed that certain previously announced corporation tax measures will be going ahead.  Additionally, he also announced a consultation on bringing non-UK resident companies with UK income (e.g. offshore companies carrying on a property business in the UK), which are currently subject to income tax on such income, within the scope of corporation … Continue reading CORPORATION TAX CHANGES – UPDATE

One of the 15 BEPS action points was the use by multi-national groups of interest and other financing expense as a means of diverting profits.  Following initial consultation the Government has confirmed that it will introduce a new structural fixed ratio rule in line with the OECD’s recommendations.  The key points that have emerged (mostly … Continue reading TAX DEDUCTIBILITY OF CORPORATE INTEREST EXPENSE

Reforms announced in the budget today will relax the rules on the use of carried forward losses.  Under the new rules, companies will be able to surrender losses from prior periods by way of group relief and the restrictions on the types of profits against which carried forward losses can be set will be relaxed. … Continue reading New loss carry forward rules for companies

George Osborne introduced a range of measures yesterday which overall signify bad news for the banks, but facilitate non-bank lending. Some of these were proposals announced in the Autumn Statement but confirmed yesterday. Bank losses: as previously announced, from 1 April 2015 there will be a restriction on the carry forward of losses to 50% … Continue reading More pre-election banker bashing

In a highly political Autumn Statement today, George Osborne could not resist another bout of banker bashing. His aim is to ensure that, once banks return to profit after the financial crisis, they pay tax on their profits rather than offsetting the huge losses brought forward from the recession to eliminate profit for what could … Continue reading Bank loss relief restriction – pre-election banker bashing?

Among the detailed tax announcements today was a measure blocking, with immediate effect, arrangements where profits are transferred between companies in the same group for tax avoidance purposes. Where it applies, the transferor company will be taxed as if the transfer had not taken place and will not be entitled to any tax deduction for the payment.  However … Continue reading Anti-avoidance: Transfer of corporate profits

Today saw the first budget for some years which did not feature a new cut in the corporation tax rate.  Instead, the previous cuts (to 21% for the year beginning 1 April 2014 and to 20% for the year beginning 1 April 2015) were reaffirmed and so it seems clear that the government intends to … Continue reading Corporation tax rates and capital allowances

Among the anti-avoidance measures announced today were two announcements affecting multinational groups. Worldwide debt cap There will be a widening of the definition of group for the purpose of the worldwide debt cap (“WWDC”).  The purpose is to ensure that groups cannot avoid or mitigate the application of the cap by including entities in the … Continue reading Worldwide debt cap and CFC changes – anti-avoidance

HMRC have signalled their intention to introduce in FB13 two new TAARs to counter loss-buying, as well as to tighten up the existing rules on capital allowances-buying and loss relief. These changes are to take effect from today (20 March 2013).  As with all anti-avoidance rules, taxpayers will be concerned to establish whether their legitimate … Continue reading New loss relief rules take effect from today