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Finance Bill 2018 receives Royal Assent

Finance Bill 2018 receives Royal Assent

The Bill received Royal Assent on 15 March, becoming Finance Act 2018.

Michelle Quest

Head of Tax, Pensions and Legal Services

KPMG in the UK


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On 15 March 2018, Finance (No.2) Bill 2017-2019 (or Finance Bill 2018, as it has also been known) received Royal Assent, and was enacted as Finance Act 2018. The Act, which is shorter than some from recent years, brings into force legislation including clarification to certain partnership tax measures, amendments to the corporate interest restriction (CIR) rules, changes to the rate of Research and Development Expenditure Credits (RDEC), new anti-avoidance rules for offshore trusts, and an SDLT holiday for first time buyers.

The Act contains measures including the following:

Partnership taxation
This legislation aims to provide clarity over certain aspects of partnership taxation. For more details, see our commentary from December 2017.

Amendments to the CIR rules
The Act contains clauses to implement the amendments to the corporate interest restriction (CIR) rules announced at the Autumn Budget. For more information, see our CIR Diary.

CGT for companies
Indexation allowance will not be allowed for RPI changes after December 2017 and the six year time limit for depreciatory transactions will be abolished, but with no need to consider depreciatory transactions before 31 March 1982.

The rate of the Research and Development Expenditure Credit (RDEC) has been increased by the Act to 12 percent. For more details, see our Autumn Budget commentary.

Offshore trusts: anti-avoidance
The Act contains new anti-avoidance provisions in relation to the tax treatment of offshore trusts.

SDLT for first time buyers
The Act introduces relief from SDLT for those buying their first home, for properties valued at less than £500,000.

For further information please contact:

Mandy Pearson

Sharon Baynham

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