United Kingdom: Spring Budget 2017
The Chancellor of the Exchequer, Phillip Hammond, presented his first and last Spring Budget on March 8. Moving forward, the UK will have an annual Autumn Budget.
The Budget was short of significant announcements. The principal changes affecting international businesses are:
- Interest deductions will be limited to £2 million, or when net interest expenses exceed 30% of UK taxable earnings, or the group’s net interest expense to earnings ratio in the UK exceeds that of the worldwide group
- The headline corporate tax rate will be cut to 19% for 2018/19 and to 17% in 2020
- Nonresident landlords will be brought under the corporate tax net instead of the income tax net
- There are increased tax avoidance sanctions and deterrents