In his recent Budget speech, the UK Chancellor said that the Government was looking for sound public finances to deliver security, and lower taxes on business and enterprise, in order to create jobs. The Government's summary published alongside Finance Bill 2016 (the Bill) takes forward this message, highlighting measures which it notes are intended to provide opportunity for families, back British business and tackle multinational tax avoidance. Two of the specific measures the Government highlights are the cut in corporation tax to 17% in 2020 and the new rules to address tax avoidance by multinationals, including tackling hybrid mismatch arrangements and ensuring payments for the use of intellectual property based overseas are subject to tax. However, there are many more changes in the Bill which businesses will be interested in, including the new Patent Box rules (which contain more clarification), the new regime for large business tax compliance, the stamp duty land tax changes on non-residential properties, and the upcoming Apprenticeship Levy.

A Tax Alert prepared by Ernst & Young UK, and attached below, provides additional details.

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