Following the Autumn Budget on 22 November, Finance (No.2) Bill 2017-19 was published on Friday 1 December. This Bill has been widely referred to as ‘Finance Bill 2018’ or the ‘Winter Finance Bill 2017’. As this Bill will eventually be enacted as Finance Act 2018, for simplicity and consistency with earlier articles, we will refer to it as Finance Bill 2018 in our coverage. While the timing of the Bill’s passage is not yet known, it is unlikely we will see the accelerated timetable towards passage that has been the hallmark of the past few Finance Bills. This will hopefully allow for meaningful scrutiny of the Bill’s clauses in the House of Commons.
Some of the measures in the Bill include:
- Increasing the rate of the Research and Development (R&D) expenditure credit to 12 percent for expenditure incurred on or after 1 January 2018;
- Changes to corporation tax on chargeable gains including indexation allowance being frozen from 1 January 2018 and the depreciatory transactions time limit being abolished from 22 November 2017;
- Certain technical amendments to the corporate interest restriction and hybrid mismatch rules which are generally intended to ensure the rules work as intended;
- Partnership taxation: proposals to clarify tax treatment;
- Withholding tax exemption for a debt traded on a multilateral trading facility;
- Tackling disguised remuneration;
- Off-payroll working reform: extension to the private sector of the IR35 reforms;
- A permanent SDLT relief for first time buyers for purchases of £500,000 or less with an effective date on or after 22 November 2017;
- A number of changes relating to tax advantaged venture capital incentives, particularly impacting Enterprise Investment Schemes (EIS) and Venture Capital Trusts (VCTs);
- Offshore trusts anti-avoidance changes; and
- Extension of VAT joint and several liability to online marketplaces.
We will be providing a more detailed look at some of these measures on our Finance Bill 2018 site, which will be updated next week once we have reviewed the legislation.
As well as the publication of the Bill, a number of consultation documents have been released. We will be covering the key items in next week’s Tax Matters Digest.
For further information please contact: