Business goodwill amortisation
The government will restrict the corporation tax relief a
company may obtain for the cost of goodwill. This will affect all
acquisitions and disposals from 8 July 2015.
Research and development (R&D) tax credits
Charities and universities will no longer be able to claim the R&D
expenditure credit for expenditure from 1 August 2015.
National insurance contributions (NICs) employment
From 6 April 2016 the government will increase the annual
NIC employment allowance from £2,000 to £3,000. Where the
director of a company is the sole employee, the company will not
be able to claim the allowance from April 2016.
Orchestra tax relief
As announced in the March 2015 Budget, tax relief will be available
to orchestras at 25% on qualifying expenditure from 1 April 2016.
Corporate debt and derivative contracts
Wide-ranging changes will modernise the corporation tax rules on
corporate debt loan relationships and derivative contracts. They
include clarifying the relationship between tax and accounting,
basing taxable loan relationship profits on accounting profit and
loss entries, a new ‘corporate rescue’ relief and new anti-avoidance
rules. The changes will generally take effect for accounting periods
starting after 31 December 2015.
Business tax future changes
The government will publish a ‘business tax roadmap’ by April
2016 setting out its plans for business taxes over the rest of the
There will be a supplementary tax on banking sector profits of
8% from 1 January 2016. The full bank levy rate will be reduced
gradually to 0.10% in 2021. Compensation expenses relating to a
bank’s widespread misconduct and mis-selling incurred after
7 July 2015 will not be deductible for corporation tax purposes.
8 JULY 2015
Directors of one-person
able to claim the NIC
of £3,000 next tax year
– so consider employing