Tax Changes Effective from 1st April


Following the last Budget on 18th March, the following tax changes* come into effect today (Wednesday 1 April 2015):

  • The Corporation Tax rate has been reduced to 20%
  • The new Diverted Profits Tax has been introduced
  • The bank levy has increased from 0.156% to 0.21%
  • Air Passenger Duty has been restructured - abolishing bands C and D
  • Hospice charities, blood bikes, search and rescue, and air ambulance charities will be eligible for VAT refunds
  • Business rates changes (England only):
                       
  • The business rates multiplier has increased from 48.2p to 49.3p (47.1p to 48.0p for small business multiplier). This includes the 2% inflation cap
 
  • The Small Business Rate Relief scheme has doubled for a further year - providing 100% relief for businesses with a single property with a rateable value of less than £6,000, and tapered relief with a rateable value of £6,000 - £12,000
 
  • The business rates discount for shops, pubs, cafes and restaurants with a rateable value of £50k or below has increased from £1,000 to £1,500
  •  The cultural test for high-end TV tax relief has been modernised and the minimum UK expenditure requirement for all TV tax reliefs has reduced from 25% to 10%
  • A new tax relief on the production of children’s television has been introduced
  • The amount of banks’ annual profit that can be offset by carried forward losses has been restricted to 50%
  • Two new bands for the Annual Tax on Enveloped Dwellings (ATED) have been introduced
  • Capital Gains Tax exemption for wasting assets will only apply if the corporate selling the asset has used it in their own business
  • An investment allowance for North Sea oil and gas, replacing the existing offshore field allowances and simplifying the existing regime, has been introduced
  • A reduced rate of fuel duty to methanol will apply - the rate is 9.32 pence per litre
  • Fuels used to generate good quality electricity by CHP (combined heat and power) plants for onsite purposes are exempt from the Carbon Price Floor
  • Climate Change Levy main rates have increased in line with RPI
  • The VAT registration threshold has increased from £81,000 to £82,000 and the deregistration threshold from £79,000 to £80,000
  • Scottish government’s Land and Buildings Transactions Tax (LBTT) will replace Stamp Duty Land Tax in Scotland
  • The associated companies rules have been replaced with simpler rules based on 51% group membership
  • The standard and lower rates of landfill tax have been increased in line with RPI

 Dont forget that you can download our latest Budget editions updates surrounding the Budget (click the images to download):

Budget _book _front _page Talking Tax Logo Tax _Data _Card _Frontpage _2015_FINAL
Our 2015 Budget Summary provides an insight into all the main measures from the announcement. Our latest edition of Talking Tax provides an insight into three key areas from the Budget, the abolishment of the Tax Return, the changes to the retirement landscape and a summary of all the new Business tax measures. The Tax Data Card for this year incorporating new rate changes.

 

*Data taken from HMRC Website - original story can be found here.

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