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transactions) with a connected party for
purposes of income tax or corporation tax.
This is intended to provide certainty for
business and minimise the potential for
double taxation.
The measure will have effect for
corporation tax purposes in relation to
accounting periods beginning on or after
1 April 2016 and for income tax purposes
in relation to the tax year 2016/17 and
subsequent tax years.
BANK LOSSES RESTRICTION
The proportion of a banking company’s
annual proit that can be offset by pre-April
2015 carried forward losses will be further
restricted from 50% to 25% from
1 April 2016.
BANKING COMPANIES
EXCLUDED ENTITIES
To ensure that banking taxes are
approximately targeted at banks, the
government will amend the excluded
entities test.
SOFT DRINKS INDUSTRY
SUGAR LEVY
The government will introduce a new soft
drinks industry levy to be paid by producers
and importers of soft drinks that contain
added sugar.
The levy will be charged on volumes
according to total sugar content, with a
main rate charge for drink above 5 grams
of sugar per 100 millilitres and a higher
rate for drinks with more than 8 grams
of sugar per 100 millilitres. There will be
an exclusion for small operators, and the
government will consult on the details over
the summer, for legislation in Finance Bill
2017 and implementation from
April 2018 onwards.
We can advise on how
Budget 2016 affects
your business