Changes to the UK tax system
Philip Hammond has announced the following changes to the UK tax system in the upcoming year:
- Limited interest deducted from taxable income. Previously, the full amount of interest was considered to reduce taxes when investing in UK real estate.
- Limitations imposed on previously incurred tax losses to reduce the taxable income in the reporting year.
- Non-residential companies and private individuals to pay taxes from income gained in the UK. This also refers to the profits from property rental.
- Planned reduction in corporate tax from 20% to 17%, to be effective by 2020.