The 2013 Finance Act became law on 17 July 2013.

The main provisions include a reduction of the corporate tax rate from 22% to 21% in 2014/15 and to 20% in 2015/16. The Act also includes the legislation introducing the General Anti Abuse Rule (GAAR).

Large companies will be able to apply for credits in respect of their research and development expenditure.  The exclusion of expenditure on railway assets and ships from first year allowances has been removed.  Tax relief is being introduced for video games development, animation and high end TV drama and documentaries, in the form of a tax credit of up to 25% of qualifying expenditure.

The exit tax is being revised following decisions by the European Court of Justice. The taxpayer now has a choice between a simplified installment system for payment of exit tax over six installments or a more complicated installment payment system relating to individual assets. This may still not be in line with EU law as tax would still in some cases arise on assets before they are realized, so further changes to the exit tax may be necessary in future .

Entrepreneur’s relief, which reduces the rate of capital gains tax paid on disposals by entrepreneurs, is being extended to apply to capital gains on the disposal of shares acquired under the Enterprise Management Incentive (EMI) scheme. The Finance Act also includes the provisions relating to the annual tax on enveloped dwellings. This applies to residential property worth more than GBP 2 million that is owned by a company. The size of the tax charge will depend on the valuation band applying to the property.