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.
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.
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