EMPLOYEE BENEFITS AND EXPENSES
A statutory exemption is to be introduced from April 2016, which is intended to simplify the tax system by introducing a statutory exemption for trivial beneits in kind costing less than £50.
SELF-EMPLOYED NATIONAL INSURANCE CONTRIBUTIONS
Consultation will commence in autumn 2015 on abolishing Class 2 national insurance contributions (NICs) and reforming Class 4 NICs for the self-employed.
BANK CORPORATION TAX SURCHARGE
A supplementary tax of 8% on banking sector proits will be introduced from 1 January 2016.
The tax will apply to the banks’ corporation tax proits prior to the use of any existing carried forward losses. The irst £25 million of proit within a group will not be subject to this tax charge.
Where a company’s accounting period straddles 1 January 2016, the period will be split and the surcharge will apply to proits of the notional period commencing on 1 January 2016.
A reduction to the full bank levy rate will be implemented changing the rate from 0.21% to 0.18% in 2016.
New legislation will also be introduced to change the tax base to UK operations only from 1 January 2021.
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