Anti-avoidance measures announced

By Stella Amiss, corporate tax partner

There are some big numbers but these cover the life of the next Parliament, and a big chunk comes from restricting reliefs - it's important to remember the vast majority of taxpayers are fully compliant, and a lot of action has been taken to deal with those that are not. 

Businesses will worry that another Chancellor could take a second bite at loss relief, now the precedent has been set.   Whether the limits for banks will ultimately be borne by their customers remains to be seen.  It may be a coincidence that the £600m giveaway on raising the personal allowance almost matches the £700m a year being raised from the banks.

The anti-avoidance measures targeting multinationals look consistent with OECD thinking.  The diverted profits tax on multinationals appears narrowly focused as it will raise about £300m a year  The main effort has understandably been around the OECD's reforms, which businesses have been expecting.