• Service: Tax, Global Indirect Tax, Global Mobility Services, International Tax
  • Type: Regulatory update
  • Date: 3/14/2014

United Kingdom - Budget on 19 March; tax provisions pre-announced 

March 14:  The UK Chancellor will present the budget speech to Parliament on 19 March 2014.

Certain tax measures have been announced in advance of the budget. These include:

  • A reduction in the corporation tax rate for profits other than ring fence profits—reduced to 21% in April 2014 before being unified with the small profits rate at 20% in April 2015
  • Changes to the rules governing the availability of trading losses when a company changes ownership
  • Employment tax changes, including rules to address offshore employers that try to avoid paying income tax or NICs on UK employment and rules to address dual employment contracts
  • A change of the status of salaried members of LLP, from partner to employee in certain instances
  • Individual (personal) taxpayer changes, including an increase in the personal allowance, and a reduction in the ownership period under the private residence relief rules
  • VAT change for the place of supply of broadcasting, telecommunications, and e-services provided by EU supplier to non-registered customers, to be to the customer’s location

Read more about these tax provisions on the KPMG webpage: Key measures already announced 2014

In advance of the budget speech, the KPMG member firm in the UK has prepared discussions of what might be expected in the budget—including possible tax proposals. Read the KPMG webpage: Chancellor’s Budget - 19 March 2014.

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