Government measures in key jurisdictions 4th edition - Flipbook - Page 153
United Kingdom
Company
law matters
Have any measures
been put in place to
accommodate social
distancing (such as
remote general
meetings)?
153
•
From 15 July 2020 to 12 January 2021, a reduced 5% rate of VAT applies (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 to 12 January 2021, a reduced 5% rate
of VAT applies (previously 20%) to supplies of accommodation and admission to
attractions across the UK.
•
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 31
March 2021 which can save up to £15,000 on a purchase.
•
Coronavirus and the UK tax system
•
The UK Government announced on 28 March 2020 that legislation will be introduced to ensure
that those companies required by law to hold annual general meetings (AGMs) (i.e. public
companies and private companies that are traded companies) will be able to do so safely and in a
manner consistent with the Stay at Home Measures.
•
On 20 May 2020, the Corporate Insolvency and Governance Bill introduced measures to
temporarily allow companies that are under a legal duty to hold an AGM to hold a meeting my
other means (i.e. virtually) even if the company’s constitution would not normally allow it.
•
Allowing companies to ignore the process set out in the existing articles will ensure that
shareholders’ rights will be reserved 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.
•
This measure, once in force, will apply until 30 September 2020 in order to cure any constitutional
defects arising as a result of the current crisis.
•
Shareholder meetings and decision making during Covid-19 lockdown.
Government measures in key jurisdictions