In the Summer Budget speech, the Chancellor spoke of his commitment to put public finances in order through a bold plan to be a more productive and balanced economy. Looking to the UK’s fiscal policy he announced a series of tax and welfare reforms, a number of which will have a real impact on the environment in which corporate entities operate:
- corporation tax set to fall to 18% by 2020;
- Annual Investment Allowance (AIA);
- enterprise zones;
- National Living Wage (NLW);
- employment allowance for National Insurance Contributions (NIC);
- apprentice levy;
- deduction for the cost of goodwill on an accounting basis through an amortisation charge to the profit and loss account will no longer be available;
- transfers of stock or goodwill to related parties;
- Controlled Foreign Companies (CFC);
- tackling anti-avoidance; and
- general anti-abuse rule.
