On 11 March 2021 Finance (No.2) Bill 2019-21, which will become Finance Act 2021 after Royal Assent, was published.
On 11 March 2021, Finance (No.2) Bill 2019-21, which is widely referred to as Finance Bill 2021, was published and, following up on our Budget special edition last week, we are including commentary on a number of key pieces of legislation in this edition of Tax Matters Digest. The Finance Bill incorporates legislation on certain new measures announced at Budget 2021 as well as measures for which draft legislation was published previously. At the time of writing no details have been published on the exact timetable for the passage of the Bill.
The measures announced at Budget 2021 which are contained within the Finance Bill include the increases in the corporation tax and diverted profits tax rates from 1 April 2023, the new temporary 130 percent ‘Super Deduction’ first year capital allowances, the temporary extension to the carry-back of trading losses for corporation tax and income tax and the repeal of provisions relating to the interest and royalties directive. For a reminder of the key Budget 2021 announcements made on 3 March 2021 please listen to our Budget 2021 webinar on-demand recording.
The Finance Bill, as expected, also includes legislation that had been announced previously such as amendments to the hybrid and other mismatches rules, changes to tackle Construction Industry Scheme abuse and to the Off-Payroll Working legislation, as well as to extend the Enterprise Management Incentives (EMI) working time relaxation amendments. New rates of Stamp Duty Land Tax (SDLT) for non-UK residents and the new Plastic Packaging Tax effective from April 2022 are also covered.
You can find further commentary on some of the key legislation in Finance Bill 2021 (FB 2021) in this edition of Tax Matters Digest as follows:
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