Corporate and Business Taxes

The main announcements for all businesses are shown below. These are followed by a list of all announcements which may be of interest to businesses. More details can be found in the Overview of Tax Legislation and Rates (OOTLAR) document.

Main announcements

  1. Corporation Tax rates Financial Years 2012, 2013 and 2014

    Legislation will be introduced in Finance Bill 2012 to reduce:

    • the main rate of Corporation Tax for non ring fence profits to 24 per cent for the Financial Year commencing 1 April 2012
    • the main rate of Corporation Tax for non ring fence profits to 23 per cent for the Financial Year commencing 1 April 2013

    Finance Bill 2012 also sets the small profit rates at 20 per cent for the Financial Year commencing 1 April 2012.

    Legislation will be introduced in Finance Bill 2013 to reduce the main rate of Corporation Tax for non ring fence profits to 22 per cent for the Financial Year commencing 1 April 2014.

    Corporation Tax: main rate

  2. Tax simplification for small businesses

    Following the Office of Tax Simplification review of small business taxation, the government will consult on introducing a voluntary cash basis for unincorporated businesses up to the VAT registration threshold, with a view to introducing legislation in Finance Bill 2013. It will also consult on a simplified expenses system for business use of cars, motorcycles and home. Finally, the government will also consult on proposals to introduce a disincorporation relief. The consultation will look at the potential demand for such a relief as well as the practicalities of how it would work.

  3. Making tax easier, quicker and simpler for small business

    Small businesses make a vital contribution to the UK economy. A document published today entitled 'Making tax easier, quicker and simpler for small businesses', sets out how the Government and HMRC are making the tax system easier for small businesses to understand and simpler to deal with. It responds to the Office of Tax Simplification's recent report on small business taxation, and sets out proposed changes to the tax rules and a number of HMRC initiatives that will make the tax system easier, quicker and simpler for SMEs.

    Making tax easier, quicker and simpler for small businesses

  4. Seed Enterprise Investment Scheme (SEIS)

    As announced in the Autumn Statement 2011, legislation will be included in Finance Bill 2012 to introduce a new Seed Enterprise Investment Scheme. Following consultation, changes have been made to the legislation to allow companies:

    • to qualify if they have subsidiaries
    • to determine eligibility by reference to the age of any trade rather than to the age of the company
    • to remove reference to the holdings of other entities in calculating asset and employee tests
    • to allow previous (but not current) employees to qualify
    • to allow directors who have qualified under SEIS to continue to qualify under EIS, subject to time limits

    Extensive guidance has been published on the HMRC Internet

  5. Patent box

    Legislation will be introduced in Finance Bill 2012 to allow companies to elect to apply a 10 per cent Corporation Tax rate to a proportion of profits attributable to patent and certain other qualifying intellectual property from 1 April 2013. In the first year this proportion will be 60 per cent and increase annually to 100 per cent from April 2017.

    Corporation Tax reform: Patent box

  6. Corporation Tax reliefs for the creative sector

    The government will introduce Corporation Tax reliefs for the production of culturally British video games, television animation programmes and high-end television productions. Consultation on the design will take place over the summer. Legislation will be in Finance Bill 2013 and will take effect from 1 April 2013, subject to State aid approval.

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All announcements

  • Controlled foreign companies (CFC) reform
  • Patent box
  • Capital Allowances Enterprise Zones
  • Capital Allowances Fixtures
  • Business Premises Renovation Allowance
  • Bank Levy rate
  • Tax treatment of regulatory capital instruments
  • Grouping rules: changes to equity rules
  • Solvency II and the taxation of life insurance companies
  • Claims equalisation reserves (CERs)
  • Oil and gas: restriction on decommissioning relief
  • Oil and gas: field allowances
  • Enhanced capital allowances scheme for energy saving technologies
  • Reduction in the main Corporation Tax rate
  • Research and development tax relief
  • Capital allowances: feed-in tariffs and the renewable heat incentive
  • Improvements to the Real Estate Investment Trusts regime
  • Tax transparent investment fund
  • Bank levy amendments
  • Lloyd's: stop-loss insurance
  • Corporation Tax: distributions in the form of assets and liabilities
  • Amendments to the tax treatment of financing costs and income (debt cap)
  • Changes to the UK generally accepted accounting practice
  • Oil and gas: scope of the supplementary charge
  • Research and development (R&D) tax credits
  • Corporation Tax reliefs for the creative sector
  • First year capital allowance for gas refuelling equipment
  • First year capital allowances for low emission vehicles
  • Capital allowances emissions threshold for a main rate car
  • Tax credits for expenditure on environmentally beneficial plant or machinery
  • Tax simplification for small businesses
  • Lease premium relief
  • Life insurance: qualifying policies
  • Life insurance: policies
  • Oil and gas: decommissioning certainty
  • Real Estate Investment Trusts (REITs)

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