News

Corporation Tax rates are set to increase from 1 April 2023 which could have a significant impact on your tax liability.

Currently, incorporated companies and associated companies suffer 19% Corporation Tax on their profits regardless of the size of the profits the business has made.

In the Spring Budget, it was announced by the Chancellor, that this will continue up to 31 March 2023, however, after this date, the Corporation Tax main rate will be increasing to 25%.

Businesses with profits over £250,000 will be charged Corporation Tax at the new main rate of 25%.  There will also be a small profits rate which will be introduced at 19% for businesses with profits up to £50,000.  Companies with profits between £50,000 and £250,000 will pay a Corporation Tax rate between 19% and 25% as the main rate will be reduced by a marginal relief.

There are many ways in which you can reduce your Corporation Tax liability.  Please get in touch with one of our specialists in our Dalston, Dumfries, Penrith or Workington offices to discuss your options.

We have also created a handy Corporation Tax calculator, which you can find here, to allow you to see how the upcoming changes may affect your business.