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Spring Budget 2017
Plant and machinery leasing The government will consult in summer 2017 on the legislative changes required following the announcement of the International Accounting Board’s new leasing standard, IFRS16, which comes into effect on 1 January 2019. The government intends to maintain the current system of lease taxation by making legislative changes which enable the rules to continue to work as intended. Research and development (R&D) It was announced that administrative changes will be made to R&D tax credits. These will increase the certainty and simplicity around claims, and will take action to improve awareness of R&D tax credits among SMEs. Appropriation to trading stock Legislation will be introduced to remove the ability for businesses to convert capital losses into trading losses where an asset is appropriated to trading stock. This will have effect for appropriations made on or after 8 March 2017. Contributions to grassroots sports As previously announced, the government will extend the circumstances in which companies can get corporation tax deductions for contributions to grassroots sports. Following consultation, the legislation has been amended to extend the treatment of a sport governing body to its 100% subsidiaries. This measure will have effect from 1 April 2017.
Withholding tax on interest
An exemption from withholding tax will be introduced for interest on debt traded on a multilateral trading facility. This will remove a barrier to the development of UK debt markets. The government will consult on implementation from spring 2017.
Double Taxation Treaty Passport Scheme (DTTPS) The government will renew and extend the administrative simplifications of the DTTPS to assist foreign lenders and UK borrowers. For overseas lenders, the scheme simplifies access to reduced withholding tax rates on interest that are available within the UK’s tax treaties with other territories. The DTTPS is currently restricted to corporate lenders and corporate UK borrowers but from 6 April 2017 this restriction will be removed and it will now apply to all types of overseas lenders and UK borrowers. Master trust pension schemes The government will amend the tax registration process for master trust pension schemes to align with the Pensions Regulator’s new authorisation and supervision regime. This will help to boost consumer protection and improve compliance. The legislation will apply to all master trust pension schemes from October 2018.
Aspirational: six previous Chancellors have gone on to become Prime Minister- Lloyd George, Winston Churchill, Neville Chamberlain, James Callaghan, John Ma jor and Gordon Brown
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