Budget Corporate Tax Reporting
Following the Budget Statement, FTI Consulting has undertaken a review of announced measures which may have an effect on our clients.
A budget of paradoxes….
The Government has re-affirmed its objective to make the UK one of the most competitive places to do business by using tax policy and capital investment to ‘equip the UK to succeed in the global race’. However, they are also strongly committed to ensuring that the UK tax system is demonstrably fair, and as such, tackling tax evasion and avoidance has become an important area for the Government, both financially and politically.
Today’s Budget has included further response from the Government on tackling the perceived ‘fairness’ of tax payments with strong reference made to ‘anti-avoidance’ measures and specific legislation, consultation and strategy details introduced to block what is seen as ‘unfair’ tax planning or avoidance.
It remains to be seen what impact these complex anti-avoidance measures, introduced to ensure large corporates ‘pay their fair share’ will have. The introduction of two new Targeted Anti Avoidance Rules (TAARs) introduced to combat the buying of unrealised losses between unconnected parties where obtaining a deduction was not a main purpose of the arrangements is likely to lead further doubt. It remains to be seen whether the uncertain tax landscape, sitting alongside the reduction in the main rate of corporation tax, will guarantee that Britain is open for business.