Highlights of the Pre-Budget Report

The Chancellor delivered his Pre-Budget Report on 27 November 2002. The Report contains very little in the way of new and radical reform. Rather, and not unexpectedly, there is more in the way of a tightening up of existing rules, together with the introduction of a number of anti-avoidance provisions. In this article we have first concentrated on changes of particular interest to the finance sector. A round-up of other changes appears towards the end.

Naomi Belcher/Emma Nendick,

Taxation of UK Branches – determination of UK taxable profits

As part of Budget 2002 the Government proposed a significant reform of the taxation of UK branches of overseas companies. The Pre-Budget Report confirmed that this change will go ahead and will take effect for accounting periods beginning on or after 1 January 2003.