The UK has released its 2020 budget. It will invest an estimated 640 billion pounds into the country's infrastructure. It also includes several important tax-related announcements.
A new writing-down allowance (structures and buildings allowance, or SBA) has been announced for nonresidential structures. It affects construction contracts entered into on or after October 29, 2018.
Effective January 1, 2019 to December 31, 2020, the maximum annual investment allowance (AIA) available to companies will increase from 200,000 pounds per year to 1m pounds per year.
Effective April 2019, the rate at which expenditure in the special rate pool is written down will fall from 8 percent to 6 percent.
The UK has announced it will be updating its Controlled Foreign Company (CFC) rules to ensure that they remain compliant with the EU Anti-Tax Avoidance Directive (ATAD). These changes include a change in the definition of “control” and a relaxation of the rules regarding finance income earned by offshore companies with significant people functions in the UK.
The UK government has announced plans to bring the tax treatment of certain intangible fixed assets created or acquired after April 2002 in line with the tax treatment of other assets when they have been transferred between group companies and the recipient company subsequently leaves the group.
- Generate more than GBP 500 million in group global revenue from the provision of social media, search engine or online market place services; and