UK Tax Alert: Budget 2018 - Key Measures for Large Business
The Chancellor didn’t have much room to manoeuvre, hemmed in by political promises to end austerity and provide a spending boost to the NHS, whilst still meeting deficit targets. Add to this the uncertainty caused by Brexit, and providing an effective, lasting Budget seemed an impossible task. He thought so anyway: Hammond pre-warned us that a no-deal Brexit in the Spring will be so significant that he might need to rethink - and deliver a new Budget.
For now, however, these constraints led to a Budget that included relatively few major changes on the tax side - with two or three notable exceptions.
Banks and insurers will be looking closely at the repeal of the Taxation of Regulatory Capital Securities Regulations and introduction of new legislation aimed at corporate hybrid capital instruments. The private equity industry will be equally interested in the changes to restrict the availability of Entrepreneurs’ Relief. The confirmation of a new digital services tax in the UK is also something of a milestone. In addition, there are plenty of other, more minor changes to digest in the coming days and weeks. In this Tax Alert we aim to summarise the main tax measures likely to be of interest to large business.