All posts with the topic: Budget – March 2014

The Chancellor today published a paper setting out the UK’s priorities for the G20-OECD project on Base Erosion and Profit Shifting (“BEPS”). The paper, titled “Tackling aggressive tax planning in the global economy: UK priorities for the G20-OECD project for countering Base Erosion and Profit Shifting” re-affirms the UK Government’s commitment to adopt any BEPS compliance measures … Continue reading Chancellor sets out the UK’s priorities for the G20-OECD BEPS project

The announcements today by the Chancellor included surprises, confirmed many predictions but some topics were notably absent. Income tax rates – no major review Recent debates on income tax rates have been highly political and will continue to be so as we approach the election. The Chancellor has increased the personal allowance by £500 for … Continue reading Wish you were here: what was missing from Budget 2014?

It might be helpful if I added some context to my avoidance and advance payments outline. According to the impact summary HMRC expect to issue payment notices to around 43,000 taxpayers. Over £5 billion of tax is anticipated to be paid. It is then expected that a range of different legal challenges will arise, including … Continue reading Tax avoidance and accelerated payments – some context

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

The Chancellor has added to the range of tax reliefs available for investors by announcing that Social Investment Tax Relief will be introduced in the Finance Bill 2014.   Social Investment Tax Relief is expected to closely mirror EIS by providing income tax relief of 30% on qualifying investments in social enterprises, deferral of CGT on … Continue reading Introducing Social Investment Tax Relief

Notwithstanding consultation criticisms it was confirmed today that the Government will press ahead with plans to reduce tax avoidance benefits. It is proposed that Finance Act 2014 will provide HMRC with powers to require a taxpayer to pay tax upfront where: • the taxpayer has entered into arrangements to obtain a tax advantage (whether or … Continue reading More on tax avoidance

New flexibility for pensions George Osborne today announced significant changes on how people will be able to access their defined contributions pension savings in the future. Several minor changes, taking effect later this month, will be made to relax the rules regarding the amounts which individuals can withdraw from pension funds, either tax-free or at … Continue reading More flexible pensions

The Government is in the process of a major re-think of fundamental aspects of the tax treatment of corporate debt and derivatives and a Technical Note is expected to be published shortly setting out proposed changes. Most of the significant changes have been postponed to 2015, but one welcome measure announced today is the extension of the … Continue reading Corporate debt and derivatives: losses allowed on de-grouping

Extension of taxation on UK residential property held by non-natural persons As one of a number of measures aimed at tackling tax avoidance, the Government is extending the package of taxes on “enveloped dwellings”, lowering the threshold so that the relevant taxes apply to residential properties worth over £500,000 (rather than only to those worth … Continue reading More changes afoot for taxation of residential properties…