After the Chancellor’s Autumn Statement on Thursday 17 November which we reported on last Monday in detail, on Tuesday 22 November, Autumn Finance Bill 2022 (official title: Finance Bill 2022/23) was published. This Bill is the first of two Finance Bills being used by the Government to enact most of the Autumn Statement measures. A further Finance Bill, Spring Finance Bill 2023, is expected to be published after the 2023 Spring Budget. Autumn Finance Bill 2022 includes legislation for most of the Chancellor’s announcements in respect of rate and threshold changes and freezes.
Second reading of the Bill is due to take place today, Monday 28 November 2022, after which the Committee of the whole House and all other remaining stages in the House of Commons are expected to take place on Wednesday 30 November 2022.
New regulations have also recently been published which specify the factors to be taken into account when determining whether a relationship between two companies constitutes ‘substantial commercial interdependence’. These regulations, ‘The Corporation Tax Act 2010 (Factors Determining Substantial Commercial Interdependence) Regulations 2022’, are relevant when assessing the number of associated companies for corporation tax rate determining purposes from 1 April 2023. The regulations set out the factors to be taken into account when determining whether a relationship between two companies constitutes ‘substantial commercial interdependence’.
The associated companies definition will also be relevant for the corporation tax quarterly instalments payment regime, small claims treatment under the patent box regime, and the capital allowances long life assets rules from 1 April 2023 as the associated company rules will replace the current related 51% group companies test.