April 1 heralds new tax changes
April 1 sees a raft of new tax changes, including the introduction of the new 25% diverted profits tax (DPT), a further 1% cut the corporation tax rate and new creative arts reliefs, while Scotland has new tax raising powers say Harris & Co accountants Northampton
From today, corporation tax has been reduced to 20%, while the bank levy increases from 0.156% to 0.21%. The amount of banks’ annual profit that can be offset by carried forward losses has been restricted to 50%.
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%. There is also a new tax relief on the production of children’s television.
In response to falling oil prices and other industry pressures, an investment allowance for North Sea oil and gas, replacing the existing offshore field allowances and simplifying the existing regime, has been introduced.
Air passenger duty has been restructured, abolishing bands C and D. Two new bands for the Annual Tax on Enveloped Dwellings (ATED) have been introduced.
Hospice charities, blood bikes, search and rescue, and air ambulance charities have been added to the list of those charities eligible for VAT refunds.
Amongst other changes and upratings to existing allowance, Capital Gains Tax exemption for wasting assets will now only apply if the corporate selling the asset has used it in their own business.
There are changes to business rates in England including an extension of the 2% cap on the RPI increase in the business rates multiplier for another year, while the Small Business Rate Relief scheme has doubled for a further year and 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.
There are also changes to the research and development tax regime, with the above the line research and development tax credit going up from 10% to 11% and the relief available to Small and Medium Sized Enterprises (SMEs) increasing from 225% to 230% of qualifying expenditure.
In Scotland, the first devolved taxes for 300 years come into effect, with the Land and Buildings Transactions Tax (LBTT) replacing Stamp Duty Land Tax in the country, and a new Scottish Landfill Tax.