BUDGET l 15 March 2023 12 Corporate interest restriction Legislation will address various issues in connection with the corporate interest restriction rules aimed at protecting Exchequer revenue, removing unfair outcomes and reducing administrative burdens for businesses. Changes will generally take effect for periods starting on or after 1 April 2023. Real estate investment trusts (REIT) Amendments will be made to the REIT regime, as previously announced. A REIT will no longer need to own at least three properties if it owns at least one commercial property worth £20 million or more. The rule for disposals of property within three years of significant development work will be amended and administrative burdens will be reduced for certain partnerships that invest in REITs. Qualifying asset holding companies (QAHC) The conditions that a company must meet to qualify as a QAHC will be amended to align better with the intended scope of the regime. VALUE ADDED TAX Registration and deregistration The VAT registration and deregistration thresholds will stay at their current levels of £85,000 and £83,000, respectively, until 31 March 2026, as announced in the Autumn Statement. Services directly supervised by pharmacists The VAT exemption for healthcare will be extended to services carried out by staff who are directly supervised by registered pharmacists in the UK, with effect from 1 May 2023. Medicines dispensed on prescription Zero-rate VAT will be extended to prescriptions for medicines supplied through Patient Group Directions from autumn 2023. > THINK AHEAD Make sure you submit your VAT returns and pay any VAT by the due dates to avoid penalties and interest. If you can’t pay on time, contact HMRC early to make a time to pay arrangement.
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