Tax changes coming into effect 1 April 2015

1 Apr 2015 10:58 AM

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