Amend section 641 of the Companies Act 2006 to prevent the use of reduction schemes of arrangement for company takeovers which enable companies to avoid paying stamp duty by cancelling the target’s shares and reissuing them directly to the acquiring company (for more information on reduction schemes, see Practice note, Schemes of arrangement: takeovers). The government expects to bring forward regulations to implement this amendment by early 2015.

Introduce legislation under which, as from 6 April 2015, all returns made to shareholders through B share schemes will be taxed in the same way as dividends (for more information on B share schemes, see Practice note, B share schemes).