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Autumn Statement (Measures with Immediate Effect)

Volume 602: debated on Wednesday 25 November 2015

As part of “Spending review and autumn statement 2015”, the Government have announced a number of measures which will have immediate effect.

Loans to Participators: trustees of charitable trusts

The Government are introducing legislation to exempt loans or advances made by close companies to trustees of charitable trusts from the tax charge under the loans to participators rules where the loans are applied only to the purposes of the charitable trust. This ensures that transactions which do not fit the policy rationale of the rules are not caught. The change will have effect for all loans or advances made on or after 25 November 2015.

Reform to the related party rules in the intangible fixed assets regime

The Government are introducing legislation to confirm how the corporation tax rules for intangible fixed assets apply to partnerships with corporate partners. This ensures the related party commencement rules will apply as they are intended to apply. The change will be effective immediately but only in respect of debits and credits accruing on or after 25 November 2015

Capital Allowances and Leasing: Anti-Avoidance

The Government are introducing legislation countering two types of avoidance involving capital allowances and leasing. The first involves artificially lowering disposal values, allowing businesses to claim excess capital allowances, and the second involves transferring entitlement to tax deductible lease payments in return for receiving a payment that is not taxed as income. The legislation will have effect for relevant transactions that take place and agreements entered into on or after 25 November 2015.

Further details on the measures listed above are contained in the draft legislation, explanatory notes and tax information and impact notes published on the gov.uk website.

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