UK and International Tax news
Finance Act 2022 Receives Royal Assent
Monday 7th March 2022
The Finance Act 2022 received Royal Assent on 24 February 2022.
The Act incorporates legislation on measures announced in the Autumn 2021 Budget as well as measures for which draft legislation was published previously.
Key measures include:
- Reduction in the rate of the Banking Surcharge, from 8% to 3%, and the surcharge allowance, from £25m to £100m, from April 2023
- Abolition of basis periods which will affect individuals, trusts, partnerships and others subject to income tax on trading income, with effect from the 2024/25 tax year, with 2023/24 being the transitional period.
- Extension of the temporary increase in Annual Investment Allowance to £1m for a further year to 31 March 2023
- Extension of reporting deadline to 60 days for disposals of UK residential land
- Introduction of the Residential Property Developer Tax at 4% and a developer’s allowance of £25m pa applied on a group basis, to profits arising from the development of certain residential accommodation for sale.
- Introduction of the Economic Crime (Anti Money Laundering) Levy applicable to certain regulated businesses.
- New powers to HMRC to tackle tax avoidance including winding up petitions for companies and partnerships, information disclosure, asset freezing, penalties to UK based entities facilitating tax avoidance, and a new public interest business protection tax
- Introduction of a new tax regime for Qualifying Asset Holding Companies effective from April 2022
- Changes to cross border group relief
- Notification of uncertain tax treatment by large companies
If you would like more information on the above, please contact Keith Rushen on 0207 486 2378.
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