UK Budget 2016

The Chancellor delivered his UK Budget on 16 March 2016. Many of the measures are geared to the taxation of individuals, including those with a sweet tooth (with a new sugar levy being introduced). We concentrate on those changes which will directly affect our corporate and business clients:

• The business tax road map – the Government has published its long term tax plans for businesses, which include adopting many of the BEPS changes, such as a cap on interest relief;
• Taxation of entrepreneurs and managers – while combating so-called tax avoidance, reducing the rate of capital gains and extending the favourable regime for entrepreneurs;
• Oil and gas – a welcome reaction to the collapse in oil prices;
• Real estate - an increase in the rate of stamp duty land tax for commercial property and bringing offshore property developers into the UK tax charge;

Overall, businesses will have a mixed reaction, depending on their sector. We await the detail; the Finance Bill is due to be published on 24 March.