Employee shareholder status
An individual lifetime limit of £100,000 will be introduced for
arrangements entered into after 16 March 2016 on gains eligible
for CGT exemption through employee shareholder status.
Stamp duty land tax
The extra 3% stamp duty land tax (SDLT) will apply to purchases
of additional residential properties from 1 April 2016. Following
consultation there will be no exemption from the higher rates for
significant investors. Purchasers will have 36 months (rather than
18 months as originally proposed) to claim a refund of the higher
rate if they buy a new main residence before disposing of their
previous main residence.
The rates of SDLT on non-residential properties will be reformed
from a slab to a banding system similar to that for residential
properties. This takes effect from 17 March 2016 with transitional
provisions for properties where contracts have already been
exchanged. There will be a 0% rate up to £150,000, a 2% rate
for the next £100,000, and a 5% rate above £250,000. A new 2%
rate will apply to leasehold transactions with a net present value
over £5 million.
The corporation tax rate, which is currently 20% and due to fall
to 19% in 2017, will be reduced to 17% from 1 April 2020.
Corporation tax payment dates
There will be a delay to the previously announced change to
corporation tax payment dates for companies with taxable
profits over £20 million. They will now apply to accounting
periods starting on or after 1 April 2019.
Corporation tax loss relief
The current streaming rules will become more
flexible. Losses arising on or after 1 April 2017 that
are carried forward will be usable against profits
from other income streams or the profits of other
16 MARCH 2016
Check that you are still
trading through the
most appropriate vehicle
for your circumstances.
Incorporation makes sense
for some people – but the
new dividend tax rules
have changed the picture.