UK unveils 2020 Budget

On March 11, 2020, Chancellor Rishi Sunak presented UK’s 2020 Budget to Parliament.

It is announced that the Government would retain the current 19% corporate tax rate in April 2020 (and not reduce the rate to 17%, as was earlier proposed).

The Budget confirms that the Government would introduce a 2% digital services tax (DST) from April 1, 2020. The DST would be levied on revenues earned by digital businesses and would ensure the amount of tax paid in the UK reflects the value these businesses derive from their interactions with, and the contributions of, an active user base.

Next, the Government would publish a consultation on the corporation tax rules that apply to hybrid mismatch arrangements that seek to exploit the differences in tax treatment between two jurisdictions.

Last, from April 1, 2020, the Government would restrict the proportion of annual capital gains that can be relieved by brought-forward capital losses to 50%.

See Budget Policy Paper