Tax changes coming into effect 1 April 2015

/ Posted By - Bradleys Accountants / Categories - Tax Planning

Following the Chancellor, George Osbourne’s last Budget of this Parliament on Wednesday 18 March 2015, the following tax changes have come into effect starting today:

  • The main rate of Corporation Tax has been reduced from 21% to 20%. Large and small companies will now pay the same rate on profits above £300,000.
  • Companies that artificially export profits to other countries will be liable for Diverted Profits Tax, also known as ‘Google Tax’
  • The bank levy has increased from 0.156% to 0.21%
  • More expensive bands of the Air Passenger Duty (APD), bands C and D, have been abolished. This means cheaper flights for people who travel over 4,000 miles (band C affects this) and over 6,000 miles (band D). However, those flying between 2,000 and 4,000 miles will pay more in duty
  • Blood bikes, hospice charities, search and rescue, and aim ambulance charities will now be eligible for VAT refunds

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    Business rates changes (England only)
    • The business rates discount for shops, pubs, cafes and restaurants with a rateable value of £50k or below has increased from £1,000 to £1,500
    • The cultural test for high-end TV tax relief has been modernised and the minimum UK expenditure requirement for all TV tax reliefs has reduced from 25% to 10%
    • A new tax relief on the production of children’s television has been introduced
    • The amount of banks’ annual profit that can be offset by carried forward losses has been restricted to 50%
    • Two new bands for the Annual Tax on Enveloped Dwellings (ATED) have been introduced
      Capital Gains Tax exemption for wasting assets will only apply if the corporate selling the asset has used it in their own business
    • An investment allowance for North Sea oil and gas, replacing the existing offshore field allowances and simplifying the existing regime, has been introduced
      A reduced rate of fuel duty to methanol will apply – the rate is 9.32 pence per litre
    • Fuels used to generate good quality electricity by CHP (combined heat and power) plants for onsite purposes are exempt from the Carbon Price Floor
    • Climate Change Levy main rates have increased in line with RPI
    • The VAT registration threshold has increased from £81,000 to £82,000 and the deregistration threshold from £79,000 to £80,000
    • Scottish government’s Land and Buildings Transactions Tax (LBTT) will replace Stamp Duty Land Tax in Scotland
    • The associated companies rules have been replaced with simpler rules based on 51% group membership
    • The standard and lower rates of landfill tax have been increased in line with RPI

    Remember to download our print-friendly PDFs of our 2015 Budget summary and 2015/16 Tax Rate Card. Written in plain English, the summary offers informative comments to help you assess the likely effect that the proposed changes may have on you, your family and your business for the year to come.

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