CORPORATION TAX RATES WILL RISE TO 25% BUT NOT FOR ALL COMPANIES
The main UK Corporation Tax rates will rise to 25% from 1 April 2023. We currently have one of the lowest corporate tax rates of the G20 countries. The government states it is committed to keeping the rate competitive, but has announced rises.
That should have the effect of encouraging companies to remain in the UK and set up here. With other countries considering raising corporate tax rates The Chancellor has announced that the UK will follow suit and consequently the rate will increase to 25% from 1 April 2023 where profits exceed £250,000. However, where a company’s profits are under £50,000 the rate will remain at the current 19% rate. There will be a taper rated for profits between £50,000 and £250,000.
At the same time, from 1 April 2021 limited companies will be able to take advantage of new tax breaks to encourage investment in equipment and an enhanced carry back of losses.
For further information contact Brian Russell on 01661 872004.