UK Reveals New Tax Rules
December 7, 2011 Taxation in UK
LONDON – The UK’s new Draft Finance Bill has been released, outlining a wealth of proposed tax changes, including new controlled foreign company rules, lowered tax rates, and measures to stop the occurrence tax evasion.
On December 6th the Exchequer Secretary of the UK David Gauke released the government’s Draft Finance Bill 2012, setting out a number of changes to the tax system, including lowering the corporate income tax rate to 24 percent by 2013, reducing the rate of the national inheritance tax by 4 percent, and expanding the tax credits available to companies carrying out research and development in the UK.
The Bill also introduced changes to the controlled foreign companies rules, with the intention of greatly increasing the appeal of the UK as an international business destination.
The alteration will update the rules used to gauge whether a controlled foreign company is held for genuine commercial reasons or for the explicit purpose of artificially diverting profits away from the UK, by applying UK taxes only on artificial offshore corporate structures.
In a move to lower the occurrence of tax evasion, a 5 percent stamp duty will now be charged on properties purchased by overseas companies. The change is expected to cut down on the number of national taxpayers hiding assets in foreign companies which are used to purchase properties for personal use.
Photo by Images_of_Money