Category Archives: Budget – March 2016

Today’s budget saw the Chancellor tinker around the margins of the pensions system. Having backed down on his widely-rumoured plans to cut tax relief on contributions, the Chancellor instead announced “Lifetime ISAs” which will be launched in April 2017 and which will effectively act as secondary pensions saving accounts which can be opened by anyone … Continue reading Tinkering with Pensions

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

Today’s Budget continued the recent trend of announcing changes to the ER regime. However, unlike previous Budgets, today’s changes generally expand the situations in which ER will be available. The main change is the extension of ER to shares held by individuals who are external investors rather than employees or directors. The Budget materials also … Continue reading Entrepreneurs’ relief – not just for entrepreneurs

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

The 2016 Budget proposes that withholding tax will apply to most royalty payments from later this year. Additional measures will apply to prevent avoidance of withholding taxes on royalty payments made to connected persons. The government is  targeting multinational groups which shift profits to low tax jurisdictions to reduce the profits which are subject to UK corporation tax. Wider … Continue reading Withholding tax on royalty payments

In our earlier blog we reported on draft legislation  which would tax carried interest and other asset managers’ performance incentives as trading income unless the average holding period of the fund’s assets was at least four years.  HMRC conceded that this was a work in progress and discussions have been conducted with the BVCA and other interested parties … Continue reading Carried interest: new legislation modified

Remote Gaming Duty and freeplays When the point of consumption gambling duty rules were being designed in 2014, many bookmakers complained that free and discounted bets should not be subjected to general betting duty, particularly since the equivalent gaming incentives – “free plays” or “free spins” – were not subject to remote gaming duty. The Government’s response … Continue reading Gambling tax Budget news

George Osborne’s 2016 Budget contains a surprisingly broad range of new tax measures addressing everything from sporting testimonials to oil fields.  However, the main changes are as follows. Companies Corporation tax will come down to 17% from April 2020. From April 2017, companies will only be able to use carried forward losses against 50% of their profits above … Continue reading Budget 2016 – headline points

In a surprise move in today’s Budget, the Chancellor has slashed the rate of capital gains tax from 28% to 20% (or, for basic rate taxpayers, from 18% to 10%).  These changes come into effect from 6 April 2016.  This will be great news for any employee holding shares in their employer company and, in … Continue reading Employee Share Incentives: a sprinkling of sugar but a cap on ESS

As previously announced, and following consultation, higher rates of SDLT are to be introduced for purchases of additional residential properties from 1 April 2016. The higher rates will be 3% above the current rates. SDLT will be calculated as follows: £0 – £125,000                3% £125,001 – £250,000       5% £250,001 – £925,000       8% £925,001 – … Continue reading SDLT and residential property – Update on the additional 3% charge