8 JULY 2015
From April 2017, a non-domiciled individual will be deemed
domiciled for IHT purposes after being UK resident for more than
15 of the past 20 years. If they leave the UK, they will lose their
deemed domicile status after five years. Also from April 2017,
individuals who were born in the UK to UK-domiciled parents will
be treated as UK domiciled while they are in the UK.
New rules will target avoidance through the use of multiple
trusts as announced in the Autumn Statement 2014. The IHT
calculation rules for trusts will also be simplified.
Corporation tax rates
The corporation tax rate will be reduced from 20% to 19% in
financial year 2017 and to 18% in 2020.
Corporation tax payment dates
There will be new payment dates for companies with annual
taxable profits of £20 million or more. For periods starting
after 31 March 2017, such companies will have to pay quarterly
instalments in the third, sixth, ninth and twelfth months of their
accounting period. Where a company is a member of a group,
the £20 million threshold will be divided by the number of
companies in the group.
The government will consult on the rules for company
distributions in autumn 2015.
Annual investment allowance (AIA)
The level of the AIA (currently £500,000)
will be set at £200,000 for all qualifying
expenditure on plant and machinery made
on or after 1 January 2016.
The AIA this year is
£500,000; from January
2016 it’s only £200,000.
So plan your capital