Corporation tax rate will be 19% for the financial years beginning 1 April 2018 and 1 April 2019 and 17% for the financial year beginning 1 April 2020.
Substantial Shareholding Exemption (SSE)
From 1 April 2017 the SSE rules will be simplified by removing the investing company requirement and providing more comprehensive exemption for companies owned by qualifying institutional investors.
In spring 2017, the government will publish guidelines for employers who make payments for image rights to their employees in order to improve the clarify of the existing rules.
Research and development (R&D)
The administrative changes to R&D tax credits will be made in order to increase the certainty and simplicity around claims.
Appropriation to trading stock
Legislation will be introduced to remove the ability for businesses to convert capital losses into trading losses where an asset is appropriated to trading stock.
Double Taxation Treaty Passport Scheme
The government will renew and extend the administrative simplifications of the DTTPS to assist foreign lenders and UK borrowers. For overseas lenders, the scheme simplifies access to reduced withholding tax rates on interest that are available within the UK’s tax treaties with another territories. The DTTPS is currently restricted to corporate lenders and corporate UK borrowers but from 6 April 2017 this restriction will be removed and it will apply to all types of overseas lenders and UK borrowers.
National Insurance Contributions
Class 2 NI contributions will be abolished from April 2018. Class 4 NI contributions will increase from 9% to 10% with effect from 6 April 2018 and from 10% to 11% with effect from 6 April 2019
Dividend allowance reduction
The tax-free dividend allowance will be reduced from £5,000 to £2,000 from 6 April 2018
Trading and property income allowances
The government will legislate in Finance Bill 2017 to create two new income tax allowances of £1,000 each for trading and property income. The allowances can be deducted from income instead of actual expenses.
Under changes announced by the government an additional nil-rate band will be introduced for each individual to enable a family home to be passed wholly or partially tax-free on death to direct descendants. Current “residence nil-rate band” of £325,000 will increase by the following amounts from 6 April 2017
2017/2048 - £100,000
2018/2019 - £125,000
2019/2020 - £150,000
2020/20121 – £175,000
The government will provide support for small business facing significant increases in bills following the business rates revaluation due to take effect in England from April 2017
The legislation will be introduced in Finance Bill 2017 to remove income tax and employer NICs advantages where benefits-in-kind are provided through salary sacrifice or other optional remuneration arrangements, such measures coming into force from 6 April 2017.
Tax-Free Childcare Scheme for working parents
A new scheme will provide up to £2,000 a year in childcare support for each child under 12.