2016 Budget: The Key Business Tax Announcements

Equitable Law's extremely brief summary of the key business tax announcements in the 16 March 2016 U.K. Budget.

The key announcements for those involved in business would appear to be:

• Corporation Tax cut to 17% from April 2020, accompanied by new restrictions on use of carried forward losses.

• The top rate of Capital Gains Tax ('CGT' - for individuals) reduced from 28% to 20% from April 2016 (other than for residential property and carried interest) and entrepreneurs' relief extended to longer term investors in unlisted companies.

• Overseas property developers are to be brought within the charge to UK tax during 2016.

• Employment termination payments that are subject to income tax on amounts in excess of GBP £30,000 will be subject to employer National Insurance Contributions ('NICs') from 2018.

• From April 2017, a fixed ratio rule will limit corporation tax deductions for net interest expense to 30% of a group's UK earnings before interest, tax, depreciation and amortisation (EBITDA), with a group ratio rule based on the net interest to EBITDA ratio for the worldwide group.

• A new Stamp Duty Land Tax ('SDLT') rates structure for sales and leases of non-residential and mixed property applies from 17 March 2016, with increased charges for higher value transactions.

As ever, there is much to 'digest' for business taxation advisers in a voluminous and detailed Budget.  

Please read further details here:  

http://www.evernote.com/l/ADZK_MjpoOlB_b8F8lWXjTtV96RYHULRSWw/ 

Mr. Dan.Johnson@EquitableLaw.com would be fully prepared to provide further information and / or discuss any issues or aspects arising.