UK publishes bill implementing corporate rate reduction, bank tax, other tax measures

The UK government on July 15 published the Summer Finance Bill 2015 to tax implement tax changes announced in last week’s budget and earlier proposals.

The bill implements a proposed cut in the corporation tax rate to 19 percent for the financial years beginning April 1, 2017, April 1, 2018 and April 1, 2019 and to 18 percent for financial years beginning April 1, 2020.

It also changes the taxation of UK banks, introducing a surcharge of 8 percent on the taxable profits of banking companies arising on or after January 1, 2016, but also scheduling a reduction in the rates at which the bank levy is charged from January 1, 2016.

Other measures would remove the ability of UK companies to reduce or eliminate a controlled foreign corporation (CFC) charge by offsetting UK losses and surplus expenses against that CFC charge. Provisions also modify the valuation of trading stock and of intangible fixed assets that are transferred between related parties.

• Summer Finance Bill 2015: legislation and explanatory notes

Related MNE Tax Articles:

• UK budget proposes cuts to corporate tax rate, reduce bank levy