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.
The UK released its 2020 budget, which will invest an estimated 640 billion pounds into the country’s infrastructure. This post summarizes important tax-related announcements from the budget.
The UK government will proceed with its proposed 2 percent digital services tax (DST). The new legislation is effective 1 April 2020.
The UK has changed the way corporation tax payments must be made in respect of profits or gains between UK companies and group companies located in other EU countries.
The UK Government has published draft legislation for the Digital Services Tax.
For accounting periods beginning on or after 1 April 2019, companies with taxable profits exceeding 20 million pounds will be required to make their quarterly payments of tax four months earlier.
UK authorities have proposed setting up a register for beneficial owners of foreign entities that own UK property.
The UK has updated guidance on its diverted profits tax (DPT), which replaces the previous guidance from 2015.
Starting in April, the UK government will tax income derived from intellectual property held by non-UK companies in low-tax jurisdictions. We explain the new rule, who has to follow it and how it reflects a global trend.
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.