The measure
Following recent consultation, legislation will be included in Finance Bill 2011 to provide an opt-in exemption from UK corporation tax for the profits of foreign branches of UK companies. Whilst today's announcement states that changes have been made to the draft legislation released for consultation last autumn (including changes to the anti-diversion rules, transitional rules and capital allowances), details will not be available until the Finance Bill is released on 31 March.
Who will be affected?
UK companies operating through branches in overseas territories (common particularly in the financial services and oil and gas exploration industries).
When?
The new exemption will be available to companies from accounting periods beginning on or after the date Finance Bill 2011 receives Royal Assent.
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