UK and International Tax news

Finance (No 2) Act 2023 Receives Royal Assent

Friday 21st July 2023

The Finance (No 2) Act 2023 was enacted on 11 July 2023, bringing into effect many of the tax measures announced by the Chancellor in his Spring Budget of 15 March 2023 and also the Autumn Statement 2022 which were excluded included from the Finance Act 2023.

Key measures include:

  • Increase in the rate of corporation tax and reintroduction of small profits tax and marginal relief, with effect from 1 April 2023
  • Introduction of a new full expensing regime for qualifying capital expenditure on plant and machinery with effect for expenditure incurred on or after 1 April 2023 but before 1 April 2026, replacing the 130% super deduction scheme that ended on 31 March 2023
  • Changes to research and development tax reliefs including reliefs for expenditure on data and cloud computing costs, the requirement to submit a pre notification before claiming, for accounting periods beginning on or after 1 April 2023 and additional information requirements for claims made on or after 1 August 2023
  • Changes to certain tax advantaged employee share option schemes
  • Reforms to pension tax reliefs including increases in the annual allowance, new limits on the tax free amount of lump sums from funds exceeding the lifetime allowance, removal of the lifetime pension limit and removal of the lifetime allowance charge
  • Changes to the tax treatment of share exchanges involving non UK incorporated close companies
  • Introduction of modified transfer pricing documentation rules for large MNEs operating in the UK with effect from 1 April 2023
  • Legislation to implement OECD’s Pillar Two in the UK, including an income inclusion rule, a multinational top up tax and a domestic top up tax, to apply to accounting periods beginning on or after 31 December 2023

 

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

 

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