UK and International Tax news

Finance (No.2) Act 2017 And Corporation Tax Changes

Wednesday 29th November 2017

Following the recent enactment of the Finance (No.2) Act 2017, HMRC has advised that some of the corporation changes included therein apply from 8 March 2017, for appropriation to trading stock, and 1 April for some other matters.

Where a company tax return covering an accounting period ending between 8 March 2017 and 16 November 2017 has been prepared and submitted without taking account of these latest changes, it may be incorrect in which case it will require amendment. Where the return is not amended, HMRC may open an enquiry into the return.

In particular, an amended tax return will be required if the original return did not take into account the amended legislation for an accounting period ending after:

  • 8 March 2017 and it contains entries relating to assets appropriated to trading stock, or
  • 1 April 2017 and it contains entries now affected by:
    • loss reform
    • corporate interest restrictions
    • substantial shareholdings exemption
    • offshore property developers
    • restrictions to deductions for employers’ payments into employee benefit schemes

For further information on these recent legislative changes, please contact Keith Rushen on 0207 486 2378.

 

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