Austerity is technically over but the spending squeeze on some government departments continues and a bad Brexit risks a return to fiscal belt tightening soon, concluded a panel at the CIOT’s Conservative Conference 2019 debate.

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.

Part of an occasional series in which CIOT tax experts explain the background to topical issues

Over the last decade, we have witnessed a revolution in cross-border tax information exchange and reporting—with significant repercussions for global tax compliance, tax planning and tax enforcement.