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UK Summer Budget 2015 - Impact on Corporates

Peter Legge Peter Legge

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.