UK: Finance Bill 2016 “draft clauses”; tax proposals | KPMG | GLOBAL

UK: Finance Bill 2016 “draft clauses”; descriptions of tax proposals

UK: Finance Bill 2016 “draft clauses”; tax proposals

The UK government on 9 December 2015 published for consultation, “draft clauses” for the forthcoming Finance Bill 2016. In general, there were no unexpected measures, but draft legislative language on certain key measures is still pending.


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Among the provisions in the draft clause are measures that would:

  • Make changes to the taxation of savings
  • Affect employment taxes
  • Affect the taxation of “carried interest” of investment managers
  • Provide for new “hybrid rules”—a follow up to the OECD’s base erosion and profit shifting (BEPS) project—and prevent a tax deduction in the UK for a cross-border payment when that payment is not subject to the relevant foreign tax
  • Restrict the available of the “patent box” regime and link its benefit to research and development incurred by the relevant company 
  • Affect the stamp duty land tax (SDLT) relief for certain transactions 
  • Revise the rules for loan relationship and derivative contract rules


Read a December 2015 report [PDF 2.7 MB] prepared by the KPMG member firm in the UK: Finance Bill 2016 Draft Clauses 

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