Corporate tax reform
The Chancellor of the Exchequer recently announced that the Government is prioritising corporate tax reform. As part of this announcement a comprehensive 95 page document entitled ‘Corporate Tax Reform: delivering a more competitive system’ has been published on the Treasury website.
The document is divided into four main sections:
- The Corporate Tax Road Map –this section sets out how the Government intends to approach reform of the corporate tax system over the next five years.
- Controlled Foreign Company (CFC) reform and interim improvements – includes an update on reforms announced at the Budget.
- The taxation of innovation and intellectual property – this includes plans to introduce a preferential regime for profits arising from patents, known as a ‘Patent Box’.
- Foreign branch taxation – this section looks at reforming foreign branch taxation by making company taxation more territorial in nature.