The UK’s Substantial Shareholdings Exemption (“SSE”) will be extended from April 2017. The main beneficiaries will be investment companies selling shareholdings of 10% or more in trading companies and companies owned by institutional investors which are themselves exempt from UK tax on capital gains The SSE was introduced in 2002 to permit trading groups to … Continue reading Substantial Shareholdings Exemption to be extended

Draft legislation published on Monday goes some way to address concerns raised during the consultation process. Importantly, the provisions have been limited to circumstances where there are abusive tax arrangements which are defeated.  Whether there are abusive tax arrangements is determined in accordance with the familiar GAAR criteria, under FA 2013.  For some reason the … Continue reading Penalties for tax avoidance enablers – Finance Bill provisions

In the Autumn Statement, the Government confirmed that it would remove the tax advantages of salary sacrifice for arrangements put in place after April 2017.  Certain benefits provided through salary sacrifice (accommodation, cars and school fees) will  be protected until 2021 and other benefits can still benefit from tax savings indefinitely (pensions, cycles, childcare, certain … Continue reading Salary sacrifice draft legislation now published

As expected, HMRC has published its response to the consultation on the remote gaming duty (“RGD”) treatment of “freeplays”.  You can find it here.  It has also published draft legislation (as part of the draft Finance Bill 2017) imposing the new RGD charge on freeplays, which has been amended as a result of the consultation (the … Continue reading Details of remote gaming duty charge on “freeplays”

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

Today’s Autumn Statement confirms that the sweeping changes to the taxation of non-UK domiciliaries (“non-doms”) which are due to take effect in April 2017 remain on track. Further details and legislation on these proposals will be released on 5 December. Individuals will then have just a few months to plan and execute any restructuring which … Continue reading Non-doms

The Finance Bill will include sanctions for enablers of tax avoidance. If the August 2016 consultation is a guide then this refers not merely to those who design, promote and market avoidance – but everyone in the supply chain who benefits from an end user implementing avoidance arrangements and without whom such arrangements could not … Continue reading Penalties for tax avoidance enablers

The ability to offer tax-favoured employee shareholder shares or ESS, until recently very common in private equity company arrangements, has been withdrawn with almost immediate effect. The only ESS arrangements that can now be completed are those where the independent advice has been given in which case the relevant employee shareholder agreement must be entered … Continue reading No more ESS arrangements possible

Today’s Autumn Statement included no mention of rates of gambling duty being raised, which is good news. Also not mentioned was any move by the Government to change the VAT rules, such that “business to business” supplies of advertising would be treated as supplied where “used and enjoyed”.  This is the concern that advertising supplies … Continue reading Gambling taxes

There were very limited property specific tax measures introduced in the Autumn Statement.  However, wider changes around interest deductibility, losses, the taxation of non-residents and the substantial shareholding exemption will have a major effect on the industry. Interest expenses As expected the government will limit interest deductions from April next year.  The proposals broadly follow the OECD recommendations with a … Continue reading Property briefing

Analysis from the award-winning CMS Tax Group