Business and corporate tax changes from 1 April 2015

The published list of tax changes that affect primarily businesses are listed below.

  • The Corporation Tax rate has been reduced to 20%
  • The new Diverted Profits Tax has been introduced
  • The bank levy has increased from 0.156% to 0.21%
  • Air Passenger Duty has been restructured – abolishing bands C and D
  • Hospice charities, blood bikes, search and rescue, and air ambulance charities will be eligible for VAT refunds
  • Business rates changes (England only):

    • The business rates multiplier has increased from 48.2p to 49.3p (47.1p to 48.0p for small business multiplier). This includes the 2% inflation cap
    • The Small Business Rate Relief scheme has doubled for a further year – providing 100% relief for businesses with a single property with a rateable value of less than £6,000, and tapered relief with a rateable value of £6,000 – £12,000
    • The business rates discount for shops, pubs, cafes and restaurants with a rateable value of £50k or below has increased from £1,000 to £1,500
  • The cultural test for high-end TV tax relief has been modernised and the minimum UK expenditure requirement for all TV tax reliefs has reduced from 25% to 10%
  • A new tax relief on the production of children’s television has been introduced
  • The amount of banks’ annual profit that can be offset by carried forward losses has been restricted to 50%
  • Two new bands for the Annual Tax on Enveloped Dwellings (ATED) have been introduced
  • Capital Gains Tax exemption for wasting assets will only apply if the corporate selling the asset has used it in their own business
  • An investment allowance for North Sea oil and gas, replacing the existing offshore field allowances and simplifying the existing regime, has been introduced
  • A reduced rate of fuel duty to methanol will apply – the rate is 9.32 pence per litre
  • Fuels used to generate good quality electricity by CHP (combined heat and power) plants for onsite purposes are exempt from the Carbon Price Floor
  • Climate Change Levy main rates have increased in line with RPI
  • The VAT registration threshold has increased from £81,000 to £82,000 and the deregistration threshold from £79,000 to £80,000
  • Scottish Government’s Land and Buildings Transactions Tax (LBTT) will replace Stamp Duty Land Tax in Scotland
  • The associated companies rules have been replaced with simpler rules based on 51% group membership
  • The standard and lower rates of landfill tax have been increased in line with RPI

Again, if you need more information on any of these changes please call.

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