UK and International Tax news

Finance (No 2) Bill 2021-22 Published

Wednesday 10th November 2021

The Finance (No 2) Bill 2021-22 has now been published and 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 and payment deadline for disposals of UK residential property
  • 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 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 and the withdrawal of the ‘third trigger’
  • A consultation on the re-domiciliation of foreign corporations to the UK which would allow a foreign company to change its country of incorporation to the UK while maintaining its legal identity as a corporate body

 

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

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