At the most recent Autumn Statement the government provided incentives and support to encourage business and the roll out of broadband infrastructure by:
- Confirming that corporation tax will be cut to 17% by 2020 helping over a million companies invest and create jobs.
- Providing a new 100% business rates relief for new full-fiber infrastructure.
The 2017 Finance Bill is expected to put into action additional measures that will tackle tax evasion, avoidance and aggressive tax planning. Some of these measures are:
- Preventing the use of disguised remuneration schemes which help people avoid National Insurance and income tax.
- Introducing a new penalty for those who enable the use of tax avoidance schemes that are later defeated by the UK Royal Court.
- Creating a new legal requirement to correct a past failure to pay UK tax on offshore accounts and investments with tough new sanctions for those who fail to do so.
- Updating the rules regarding how companies claim tax deductions for interest expenses and losses.
The UK Government is also consulting on a new requirement for the creators of offshore structures to register them with the UK Royal Court.
The UK Financial Secretary to the Treasury, Jane Ellison, have said:
"We are recognised as having one of the world's most effective tax regimes and this government is acting to ensure it continues to provide certainty for businesses, fairness for workers and a sound tax base to fund productivity boosting investment."
"The UK is forecast to be the fastest growing major advanced economy in the world this year and we are making sure we are prepared to meet the challenges and seize the opportunities presented by Brexit."
Final details of the Finance Bill draft legislation, published on 5 December 2016, will be confirmed in Budget 2017 and legislation introduced in the corresponding Finance Bill.