21 March 2016 Law firm clients: UK Budget could affect law firms The UK Budget, released on March 16, outlines the British Government's fiscal strategy for the tax year April 6, 2016 to April 5, 2017 and beyond. The new budget will affect law firms that have a UK presence, as well as those with UK partners. For employers, the main announcement is an extension of National Insurance contributions (UK social security) to some termination payments. More generally, the most significant announcement is a reduction in capital gains tax rates from 18% to 10% and from 28% to 20% for basic and higher rate taxpayers, respectively, excluding sales of residential property. Additionally, there are updates for the deemed-domicile rule and personal income tax allowances. Much of the law to enact these measures will be detailed in the Finance Bill 2016 and subsequently presented to Parliament to pass into law. For details, see Tax Alert 2016-511.
Document ID: 2016-0537 | |||||||
