United Kingdom Budget
The United Kingdom (UK) Budget: was handed down on 16 March 2016. Some of the key measures announced include:
- a reduction in the corporation tax rate to 17 per cent by 2020 (previously due to fall to 18 per cent)
- more details on the implementation of Base Erosion and Profit Shifting (BEPS) Action 4
- changes to the loss relief rules for businesses
- extension of the anti-hybrid rules to eliminate tax advantages arising from mismatch arrangements involving permanent establishments
- expanded royalty withholding tax rules and treaty abuse.
Foreign resident CGT withholding regime
The new capital gains tax (CGT) withholding tax regime, applicable to the disposal of certain property by foreign residents, is now law and will apply to acquisitions of CGT assets on or after 1 July 2016. For the majority of cases, this will be in respect of contracts for disposal entered into on or after 1 July 2016. As the new law potentially imposes a withholding obligation on the purchaser of any ‘taxable Australian (real) property’, any ‘indirect Australian real property interest’ (such as a share in a company or a membership interest in a trust) or an option or right to acquire such property or interest, it is important for both vendors and purchasers (resident and nonresident) to understand how this law will apply.
The India Budget 2016 was presented on 29 February 2016 and contains a number of taxation measures. For further information read our PwC Tax Insight.
New Zealand tax developments
See PwC New Zealand’s Tax Tips 2016 for the latest New Zealand tax developments.