UK and International Tax news

Finance Bill 2018 Receives Royal Assent

Monday 9th April 2018

The Finance (No.2) Bill 2017-2019 (‘Finance Bill 2018’) received Royal Assent on 15 March 2018 and was enacted as Finance Act 2018.

The Act runs to 187 pages, 50 sections and 12 schedules and includes many of the provisions of the Finance Bill 2018, and some announced in the Autumn Budget 2017, in particular:

  • corporate interest restriction amendments,
  • hybrid and other mismatches amendments,
  • changes to CGT rules for companies including no indexation allowance for RPI changes after December 2017, abolition of the six year time limit for depreciatory transactions, and no requirement to consider depreciatory transactions before 31 March 1982,
  • increase in the rate of Research & Development Expenditure Credit to 12%,
  • new anti-avoidance provisions in relation to the tax treatment of offshore trusts,
  • relief from SDLT for first time buyers for properties valued at less than £500,000, and
  • changes to certain aspects of partnership taxation,
  • changes to rules on EIS and VC reliefs relating to knowledge intensive companies and the introduction of the risk to capital condition to EIS, SEIS and VC investments, and
  • changes to the bank levy in respect of chargeable equity and liabilities.

FA 2018 will be the only Finance Act this year as the next round of statutory provisions will follow on from the Autumn Budget towards the end of the year and tese will not be enacted until 2019.

If you would like further information on FA 2018, please contact Keith Rushen on 0207 486 2378.

 

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