UK and International Tax news

Draft Tax Legislation And FB 2012

Wednesday 7th December 2011

Following on from the March 2011 Budget and the Chancellor’s Autumn Statement, the Government has now published responses to a number of tax policy consultations, alongside draft clauses for legislation to be included in Finance Bill 2012. 

This is consistent with the Government’s objective of confirming the majority of intended tax changes at least three months ahead of publication, making the tax system more open, predictable and stable.

The draft clauses are open to consultation, and taxpayers, businesses and tax professionals are able to contribute to this until 10 February 2012.  Thereafter, the Finance Bill 2012 will include the next steps in the Government’s plans to make the UK system the most competitive in the G20, in particular:

  • cutting corporation tax from 26% to 23% by 2014;
  • reforming the controlled foreign companies regime, and
  • introducing a patent box regime.

It also introduces measures to improve growth through more generous R&D tax reliefs, enhanced capital allowances for enterprise zones, and a new seed enterprise investment scheme.

In addition, the draft legislation includes clauses to introduce the VAT cost sharing exemption, and details of proposals to encourage charitable giving and philanthropy.

 If you would like further details on the above, please contact Keith Rushen on 0044 (0)20 7486 2378.

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