Corporation tax rates
The budget reduces the main rate of corporation tax in the United Kingdom to 23% (from 24%) as of April 1, 2013. The rate is expected to further decrease to 22% as of April 1, 2014 and to 20% as of April 1, 2015.
Other tax changes
The budget also:
- Amends the new CFC regime introduced in Finance Act 2012
- Increases the research and development tax credit rate to 10% (from 9.1%) of qualifying expenditure, before tax is deducted
- Changes the sub-sale rules for stamp duty land tax (retroactively effective to March 21, 2012)
- Clarifies new legislation concerning banks' regulatory capital
- Limits liabilities deductions for inheritance tax
- Allows manufacturers to make value added tax adjustments when "goodwill" type payments are made directly to end-customers
- Changes the taxation of gains and income arising in offshore structures.
For more information, contact your KPMG adviser.
Information is current to March 26, 2013. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500