UK and International Tax news
Finance Act 2024 Receives Royal Assent
Wednesday 28th February 2024
The Finance Bill 2023-24 received Royal Assent on 22 February 2024.
The Finance 2024 Act contains 39 sections and 13 schedules and covers in particular the following:
- Permanent 100% expensing for expenditure on plant and machinery, removing the previous temporary regime due to expire on 31 March 2026.
- Replacement of the existing scheme for R&D expenditure credit and amending the existing SME scheme for R&D relief with a merged scheme for companies that invest in R&D, to take effect for accounting periods beginning on or after 1 April 2024 [date to be appointed].
- Extension of EIS and VCT reliefs to shares issued before 6 April 2035, previously 6 April 2025.
- The cash basis to become the default basis for the calculation of trading profits of a trade, profession of vocation in the absence of an election for the calculation to be based on GAAP.
- Amendments to the implementation of OECD Pillar 2 and multinational and domestic top up taxes for accounting periods beginning on or after 31 December 2023.
- Tax evasion and avoidance including increasing maximum terms of imprisonment for tax offences, disqualifying directors for promoting tax avoidance schemes, and making it an offence to fail to comply with a stop notice without reasonable excuse.
- Amendments to existing rules to the corporation tax regime applying to REITS, including conditions in respect of diversity of ownership, non-close companies, and collective investment schemes.
- Extension of time limits for the notification of options granted under EMI schemes.
If you would like more information on the new Act, please contact Keith Rushen on 0207 486 2378.
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