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Loan relationships

The legislation on corporate debt and derivative contracts will be

updated, simplified and rationalised. The changes will include a

clearer and stronger link between commercial accounting profits

and taxation. There will be a new tax relief for companies in

financial distress and new rules to protect the regime against tax


Corporation tax loss refresh prevention

Anti-avoidance legislation, effective from 18 March 2015, will

prevent companies obtaining a tax advantage by entering into

contrived arrangements to turn historic tax losses whose use is

restricted into more versatile in-year deductions.

Capital allowances

A new measure will clarify, from 26 February 2015, when it was

first announced, the effect of anti-avoidance rules for capital

allowances where there are transactions between connected

parties or sale and leaseback transactions.

VAT thresholds

The VAT registration threshold will rise from £81,000 to £82,000

and the deregistration threshold will increase from £79,000 to

£80,000. Both changes take effect from 1 April 2015.

Deductible VAT relating to foreign branches

Businesses will not be able to take account of foreign branches

when calculating how much VAT on overhead costs they can

reclaim in the UK. The measure will affect partially exempt

businesses and they will have to implement the change from the

beginning of their next partial exemption tax year falling after

31 July 2015.


18 March 2015

page 14