Corporate Taxes

 


There was not much love for the government’s Digital Services Tax (DST) at the latest CIOT/Institute for Fiscal Studies (IFS) debate.

The Conservatives have not yet published their election manifesto. There are rumours it will be published on Sunday. But the party has revealed a number of elements of its tax plans this week.

The Labour Party have published their general election manifesto, which includes plans for higher corporation tax, income tax increases for those earning more than £80,000 and taxing capital gains and dividends at income tax rates with a single allowance.

The Chartered Institute of Taxation (CIOT) responds to the consultation document which sets out HMRC’s current thinking and approach to interpreting DAC6.

Liberal Democrat conference in Bournemouth backed radical changes to corporation tax, including restrictions to reliefs, a boost to capital allowances and extending the tax to cover highly profitable partnerships and other unincorporated businesses. For multinationals the party wants a wider definition of permanent establishment and, longer term, a global system of business taxation. In an autumn election a penny on income tax for health and social care, and restoring the 20% rate of corporation tax to increase funding of public services, would likely be key policies.

The CIOT comments on the draft legislation published on 11 July 2019 (L-day) intended to be included in the next Finance Bill to give effect to the Corporate Capital Loss Restriction (CCLR). The CCLR was announced at Budget 2018 and the government subsequently consulted on the detail of the delivery of the CCLR. 

The CIOT has been corresponding with HMRC recently regarding the current position of significant delays in processing times of claims for R&D tax credits and RDEC claims by HMRC.  The problems that the significant delays being experienced are causing has been raised with us by a number of our members. 

The CIOT response to the draft regulations on Offshore Receipts in respect of Intangible Property.

The CIOT comments sent to HMRC on Preventing abuse of the R&D tax relief for SMEs.

The Centre for Policy Studies’ (CPS) new Think Small report calls for the government to adopt an ‘emblematic’ policy to champion small and family businesses: the Simple Consolidated Tax (SCT).