• UK Budget 2012 - Key Tax Measures
  • March 26, 2012 | Author: Adam Ferguson Blakemore
  • Law Firm: Cadwalader, Wickersham & Taft LLP - London Office
  • The Chancellor of the Exchequer’s third budget, held on 21 March 2012, might well be remembered in future years for a balancing act (at least in a taxation context) between stimulus and incentive on the one hand, and austerity and anti-avoidance on the other. A number of the Chancellor’s provisions focused on enterprise incentives and were accompanied by an additional 1 per cent. reduction in the main rate of UK corporation tax from April 2012. While these announcements will be welcomed, they were balanced against a very tough message on tax avoidance ¿ particularly in the areas of stamp duty land tax planning and income tax avoidance. Foremost among the Budget statements on combating tax avoidance was the announcement that the Government will proceed with the introduction of a general antiavoidance rule (“GAAR”), consulting in the summer of 2012 on draft legislation based on the recommendations of the Aaronson Report published in November 2011 with a view to introducing legislation in Finance Bill 2013.