The new Chancellor has largely confirmed his predecessor’s direction of travel in his first Autumn Statement. The planned reductions in the rate of corporation tax remain unchanged and the restrictions on interest relief and loss carry-forwards will also be brought in from next April. The approach appears to be to reduce the headline rate while ensuring that larger businesses still pay significant amounts of tax. More detail is expected when the draft Finance Bill is published on 5 December.
Please find at the link below our summary of the main tax announcements.
Highlights for business include:
- Autumn Statement to be abolished. There will be a Spring Budget next year and then an annual Autumn Budget.
- Corporation tax rate confirmed as going down to 17 percent by 2020.
- Loss relief restrictions to 50 percent of profits for larger groups from 2017 confirmed.
- Interest deduction restriction of 30 percent of EBITDA from 2017 confirmed.
- Consultation on bringing non-resident landlords into corporation tax.
- Most salary sacrifice arrangements rendered ineffective.
- Tax benefits of Employee Shareholder Status removed.