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Salary sacri"ce schemes
The tax and employer national insurance advantages of salary sacri"ce schemes will be removed from April 2017, except for
arrangements relating to pensions, childcare, cycle to work schemes and ultra-low emission cars.
Arrangements in place before April 2017 will be protected until April 2018 and arrangements for cars, accommodation and
school fees will be protected until April 2021.
Carry forward of losses
From April 2017, the government will proceed with restricting the amount of pro"t that can be offset by carried forward losses
to 50%, while allowing greater $exibility over the types of pro"t that can be relieved by losses incurred after that date.
The restriction will be subject to a £5 million allowance for each standalone company or group.
Large groups and interest costs
New rules will come into force from 1 April 2017 to limit the tax deductions that large groups can claim for their UK
interest expenses.
The rules will seek to limit deductions where:
• a group has net interest expenses of more than £2 million
• net interest expenses exceed 30% of UK taxable earnings
• the group’s net interest to earnings ratio in the UK exceeds that of the worldwide group.
Pensions
From 6 April 2017 the money purchase annual allowance will reduce from £10,000 to £4,000. This is to prevent double
pension tax relief being obtained when pension savings are recycled. This announcement was made in November 2016 and is
still subject to government consultation which is running until 15 February 2017.
Non-UK domiciles taxation
From April 2017 non-domiciled individuals will be deemed UK domiciled for tax purposes if they have been a UK resident for
15 of the past 20 years, or if they were born in the UK with a UK domicile of origin.
Inheritance tax will be charged on UK residential property when it is held indirectly by a non-domiciled individual through an
offshore structure, such as a trust or a company.
The government will make it easier for non-domiciled individuals who are taxed on the remittance basis to bring offshore
money into the UK to invest in UK businesses and to claim business investment relief.
Get in touch to see how we can help.
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