Key points for businesses from the Autumn Statement
George Osborne has announced a 25% Diverted Profits Tax to be levied on multinationals who use ‘artificial’ arrangements to divert profits from their UK economic activity overseas in order to avoid paying UK tax. The tax is aimed at companies such as Google, Starbucks and Amazon and will be introduced in April 2015.
Banks are also in the Chancellor’s firing line and from April 2015 they will only be able to offset 50% of previous years’ losses against current year profits.
Other changes announced in the Coalition’s final Autumn Statement include an increase in the business rates discount for small shops, pubs and cafe premises to £1,500, the abolition of employer’s national insurance for companies employing apprentices aged under 25, an increase in the tax-free personal allowance to £10,600 and the approval in principle to devolve corporation tax setting powers to Northern Ireland.