All posts with the topic: Corporation tax

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

In recent years the Chancellor has had a dual approach to corporation tax, reducing the headline rates, which feature in international comparisons, but increasing the amounts on which tax is charged so tax revenues are not reduced. This has been done not only by  counteracting perceived tax avoidance but also by restricting or delaying permitted deductions such … Continue reading Corporation tax: future rate reduction, but …

A number of points made by George Osborne in his Budget speech earlier today will impact on the Banking sector, and therefore on any businesses seeking to raise loan finance. Bank levy and corporation tax Prior to the Budget, it had been trailed that the bank levy was likely to remain for the foreseeable future. … Continue reading Bashing the banks? Summer Budget measures that will affect banks and finance clients

The Chancellor today abolished the corporation tax deduction on the amortisation of goodwill that has been acquired as part of a business purchase. This change will have a material impact on the economics of business acquisitions, where the tax deduction on acquired goodwill has been a major driver in businesses being acquired by way of an … Continue reading A lack of goodwill

Some of the measures announced this afternoon in the 2015 Summer Budget are as follows: Corporation tax corporation tax to be reduced to 19% in 2017 and 18% in 2020; corporation tax instalment payment dates brought forward for businesses with profits of £20m; annual investment allowance to settle at a permanent level of  £200,000 from … Continue reading Overview of main measures

Today’s budget included the stamping out of various techniques (known as “refreshing” arrangements) that allow companies to use certain types of brought forward losses which might otherwise not be used (sometimes described as being “trapped”). The losses in question are trading losses, non-trading loan relationship deficits (interest expenditure) and management expenses which, in each case, … Continue reading A more straight forward rule would have been refreshing

Tomorrow’s Budget Speech is likely to have a split personality, being the final Budget of the Con/Lib Coalition Government but also an opportunity for this most political of Chancellors to publicise some of the more electorally attractive policies to be included in the forthcoming Conservative manifesto. This blog post concentrates mainly on the former aspect. … Continue reading Budget March 2015: what are we expecting?

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