On March 16, 2016, U.K. Chancellor George Osborne presented the first Spring Budget of the U.K. Parliament with some significant changes that may affect U.S.-based companies with operations in the U.K. (as well as U.K.-based companies with operations in the U.S.) and individuals with both U.S. and U.K. ties (e.g., U.S. citizenship but U.K. residency, etc.).
The significant tax proposals in the budget include:
- Reduction in the U.K. capital gains tax rate
- Reduction in the U.K. corporate tax rate
- Reforms to U.K. corporate tax losses
- Changes to Entrepreneurs’ relief
- Introduction of a Lifetime ISA for under 40s