UK Announces New GAAR Penalty in 2015 Autumn Statement | KPMG | CA

UK Announces New GAAR Penalty in 2015 Autumn Statement

UK Announces New GAAR Penalty in 2015 Autumn Statement

Global Tax Adviser, December 08, 2015. The United Kingdom's announcement that it is proposing a 60% penalty on arrangements that are successfully challenged under the General Anti-Abuse Rule (GAAR) was one of the highlights of the annual Autumn Statement and 2015 Spending Review that was released November 25, 2015.

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Details of some of the measures included in the Autumn statement may be covered in more depth within the draft Finance Bill 2016 clauses, to be released on December 9, 2015.

Tax highlights

Some of the more pertinent themes and proposals from the Autumn Statement are listed below:

  • Businesses-New anti-avoidance measures, including those targeting the use of partnerships to gain tax relief for related party intangibles, and a new requirement for large businesses to publish tax strategies 
  • BEPS-New legislation will be introduced, effective January 1, 2017, to implement the OECD's recommendation on hybrid mismatches
  • Employers-Apprenticeship Levy details, including the levy rate which will be 0.5% of an employer's "paybill", applicable to all UK employers
  • Individuals-A 30-day capital gains tax payment window on disposals of residential property from April 2019 and higher stamp duty for additional residential properties.

The upcoming phased-in reduction of the corporate tax rate to 18% by 2020, and other key rates, remain unchanged.

For more information, contact your KPMG adviser. 

Disclaimer

Information is current to December 08, 2015. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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