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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

allowance

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

parliament.

Banks

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.

BUDGET

8 JULY 2015

page 8

think ahead

Directors of one-person

companies

won’t be

able to claim the NIC

employment allowance

of £3,000 next tax year

– so consider employing

someone.

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