3
Spring Budget 2017
Business tax and investment incentives Corporation tax
Corporation tax rates are as follows: Financial year to
31 March 2018
31 March 2017
Corporation tax rate
19%
20%
The corporation tax rate will be 19% for the financial years beginning 1 April 2018 and 1 April 2019 and 17% for the financial year beginning 1 April 2020.
Cash basis The entry and exit thresholds for cash basis accounting will increase to £150,000 and £300,000, respectively. These increases will have effect on and after 6 April 2017. The government will also simplify the rules on capital and revenue expenditure within the cash basis, to make it easier for businesses to work out whether the expenditure is deductible for tax. Profits from trading in and developing UK land Legislation will be introduced to ensure that all profits from trading in or developing land in the UK, that are recognised in the accounts on or after 8 March 2017, are brought into the charge to corporation tax or income tax, regardless of the date the contract was entered into.
Substantial Shareholdings Exemption (SSE)
The government will legislate to simplify the SSE rules, remove the investing company requirement, and provide a more comprehensive exemption for companies owned by qualifying institutional investors. The changes will take effect from 1 April 2017.
Employer provided accommodation A consultation document will be published on 20 March 2017 with proposals to bring the tax treatment of employer provided living accommodation and board and lodgings up-to-date. This will include proposals for when accommodation should be exempt from tax and support taxpayers during any transition. Benefits-in-kind It was announced that the government will publish a call for evidence on 20 March 2017 on exemptions and valuation methodology for the income tax and employer NICs treatment of benefits-in-kind. This is in order to better understand whether their use in the tax system can be made fairer and more consistent.
Image rights
HMRC will publish guidelines in spring 2017 for employers who make payments for image rights to their employees in order to improve the clarity of the existing rules.
Longstanding tradition: a British Budget has been delivered for nearly 300 years
FOR ELECTRONIC USE ONLY
Made with FlippingBook HTML5