companies within a group. Also from 1 April 2017, companies
will only be able to use losses carried forward against up to
50% of their profits above £5 million. For groups, the £5 million
allowance will apply to the group.
The proportion of a banking company’s annual taxable profit
that can be offset by pre-April 2015 carried-forward losses will
reduce from 50% to 25% from 1 April 2016.
Capital allowances on cars
The 100% first year allowance (FYA) for businesses purchasing
low emission cars will be extended for a further three years
to April 2021. From April 2018 only cars with CO
50g/km will qualify for FYA (currently 75g/km). From the same
date, the CO
emission threshold for the main rate of capital
allowances for cars will be reduced from 130g/km to 110g/km.
Research and Development (R&D) tax credits
Legislation for the small and medium enterprises (SME) R&D tax
credit scheme will be amended to ensure it continues to work as
intended after the previous large company scheme ends on
31 March 2016.
Museums and galleries tax relief
A new corporation tax relief for museums and galleries will
be available for temporary and touring exhibition costs from
1 April 2017.
Capital allowances and leasing
As previously announced, legislation to counter two types of
avoidance involving capital allowances and leasing will be effective
from 25 November 2015. The measure prevents companies from
artificially lowering the disposal value of plant and machinery,
and taxes as income any payment received for agreeing to
take responsibility for tax-deductible lease-related
16 MARCH 2016