Government measures in key jurisdictions 5th edition - Flipbook - Page 161
United Kingdom
Company
law matters
•
From 15 July 2020, a reduced 5% rate of VAT has applied (previously 20%) to supplies
of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar
premises across the UK. From 15 July 2020, a reduced 5% rate of VAT has applied
(previously 20%) to supplies of accommodation and admission to attractions
across the UK. The government has now extended the temporary reduced rate of 5%
VAT for goods and services supplied by the tourism and hospitality sector until 30
September 2021. To help businesses manage the transition back to the standard 20%
rate, a 12.5% rate will apply for the subsequent six months until 31 March 2022.
•
There is a temporary increase in the Nil Rate Band of Stamp Duty Land Tax on
residential property purchases in England and Northern Ireland from £125,000 to
£500,000 until 30 June 2021 which can save up to £15,000 on a purchase. Thereafter
from 1 July 2021, the Nil Rate Band will reduce to £250,000 until 30 September 2021
before returning to £125,000 on 1 October 2021.
•
Coronavirus and the UK tax system
•
Have any measures
been put in place
•
to accommodate
social distancing
(such as remote
general meetings)?
•
On 20 May 2020, the Corporate Insolvency and Governance Act 2020 introduced
temporary measures to allow those companies required by law to hold general
meetings to do so by other means (i.e. virtually) even if the company’s constitution
would not normally allow it.
Allowing companies not to follow the process set out in the existing articles will
ensure that shareholders’ rights will be protected by allowing them to vote on issues
virtually. This will also ensure that directors are not exposed to liability for a lack of
shareholder approval of certain actions taken by the company.
These measures have been extended and now apply until 30 March 2021. It is likely,
at least in the short term, that this timing will not be extended further. As such,
companies should seek to hold general meetings before that date to take advantage
of the temporary extension.
Government measures in key jurisdictions
161