The amount of banks’ annual profits that can be offset by
carried-forward losses will be restricted to 50% from 1 April
2015, as announced in the Autumn Statement 2014. Following
consultation, there will be a change to the measure’s targeted
anti-avoidance rule and a £25 million allowance for affected
The rate of Bank Levy will rise from 0.156% to 0.21%
from 1 April 2015. A future Finance Bill will prevent banks’
compensation payments being deductible for corporation tax.
Legislation will be introduced to give the UK power to implement
the Organisation for Economic Cooperation and Development
(OECD) model for country-by-country reporting. Multinational
enterprises will have to provide high level information to HMRC
on their global allocation of profits and taxes paid, as well as
indicators of economic activity in a country.
Flood defence relief
Business contributions to Flood and Coastal Erosion Risk
Management projects will be tax deductible for corporation
tax and income tax from 1 January 2015, as announced in the
Autumn Statement 2014.
The simplified expenses regime will be amended
to ensure that partnerships can fully access the
provisions in respect of the use of a home or
where business premises are also a home.
Late paid interest
The rules concerning loans made to UK companies
by a connected company in a non-qualifying
territory will be repealed.
Check you are trading
through the most
appropriate vehicle for
Incorporation makes sense
for some people – but not
18 March 2015