A cut corporation tax to 20%, a new diverted profits tax against corporate tax avoidance and an increase in the bank levy were among the tax changes introduced by the UK government on 1 April.
Other UK tax changed include:
- New reporting requirements came into force on 6 April 2015. for employment intermediaries/agencies that engage and supply workers. They will now have to submit quarterly reports providing details of all workers they place with clients where they do not operate PAYE.
- 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 £50,000 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%
In a more detailed examination of the latest changes, Gabelle also highlighted impending changes to the Annual Tax on Enveloped Dwellings (ATED) regime. A new band has been introduced for £1m+ properties and annual charges have been increased for higher value properties.
A new relief declaration return has been introduced that means only one return needs to be submitted for each entity per relief. If an additional property qualifying for the same relief is acquired, an additional ATED return need not be submitted.
Meanwhile, Scotland’s government has said that it will introduce replacement taxes on disposals to landfill and on land and property transactions.
The taxes will be administered and collected in Scotland through the establishment of Revenue Scotland, which would work with Registers of Scotland and the Scottish Environment Protection Agency to collect the devolved taxes.