The UK government has introduced legislation on March 28, 2016 to implement a number of fiscal measures including changes in the corporate tax.
Finance bill will reduce the lower income tax rate to 17 percent by 2020. Earlier it was planned to be reduced to 18 percent. Currently, the rate is 20 percent.
In addition, the legislation will alter the oil and gas tax regimes. It will be twice the additional fee has been reduced which is paid to gas companies from 20 percent to 10 as well as tax on profits from oil and gas production from 35 percent to zero rate.
The bill also contains a number of measures to combat tax evasion. The new rules will solve the hybrid mismatch arrangements and ensure that the payments for the use of intellectual property abroad are subject to taxation. The bill assumes that the profits from property development in Britain should always be taxed and focused on evasion of value added tax foreign sellers and online trade.
Provided the growth of the personal allowance without paying taxes since 2017. In addition, the legislation increases the threshold for a “higher” tax rate (40 percent) from 42.382 pounds to 45,000 pounds.
Financial Secretary of the Treasury David Gauke said: “The government is taking bold steps to ensure the long-term solution of the long-term problems. This legislation will reduce the burden on businesses and provides the necessary reforms to ensure the growth of investment and increase jobs in the UK.”