Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 3/21/2013

United Kingdom - Tax provisions in 2013 Budget 

March 21:  The Chancellor of the Exchequer on 20 March 2013 delivered the 2013 Budget statement to the House of Commons—including tax proposals affecting business and individual taxpayers.

Among the tax provisions in the 2013 Budget:


  • Continued reduction of the corporation tax to 23% (effective 1 April 2013) with further reductions planned to bring the rate down to 21% (effective 1 April 2014) and then 20% (effective 1 April 2015)
  • Amendments to the new controlled foreign companies (CFC) regime (introduced in Finance Act 2012)
  • Increase in research and development (R&D) tax credit rate to 10% of qualifying expenditure, before tax is deducted
  • Changes to sub-sale rules with respect to stamp duty land tax (SDLT) (retroactively effective 21 March 2012)
  • Clarification and new legislation concerning banks' regulatory capital
  • Limitations to liabilities deductions for inheritance tax
  • Legislation to permit manufacturers to make value added tax (VAT) adjustments when "goodwill" type payments are made directly to end-customers
  • Changes to the taxation of gains and income arising in offshore structures

Read KPMG’s Budget 2013 Commentary [PDF 1.6 MB] prepared by the KPMG member firm in the UK.


Also visit the KPMG Budget-dedicated website for other related commentary and analysis.




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