UK and International Tax news

Finance Bill 2021 Published

Friday 19th March 2021

The Finance (No 2) Bill 2019-21, known as the Finance Bill 2021, has now been published and key measures announced in the March 2021 Budget are included.

Draft clauses for inclusion in the Finance Bill 2021 were issued for consultation last July and November and these included, in particular, changes to the treatment of termination payments, and the proposed SDLT surcharge for non UK resident buyers of residential property, previously announced at the time of the 2018 Budget.

The Finance Bill 2021 now includes key March 2021 Budget measures, such as

  • Increase in corporation tax rate to 25% from April 2023
  • A 130% super deduction for capital expenditure incurred by companies on/after 1 April 2021 and before 1 April 2023
  • Extension of the temporary increase in annual investment allowances of up to £1m for a further year to 2022
  • Temporary extension of carry back provisions for trading losses arising in 2020/21 and 2021/22
  • Restrictions to claims for R&D tax credits for SMEs
  • Repeal of provisions relating to the Interest and Royalties Directive
  • Extension of temporary period for reduced rates of SDLT on residential property
  • Extension of digital record keeping for VAT purposes to all businesses
  • Changes to HMRC interest and penalty rules
  • Designation of freeport sites with special rules for capital allowances and relief from SDLT
  • Further anti avoidance measures

 

If you would like more information on the above, please contact Keith Rushen on 0207 486 2378.

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