CKLG BLOG
The Future of UK Corporation Tax
09.04.2021
Business
In the Spring Budget 2021, Chancellor Rishi Sunak announced that the UK’s main rate of corporation tax would increase to 25% on profits over £250,000 from April 2023.
At the same time, a separate small-profits tax rate of 19% will be introduced for profits up to £50,000. Profits in between the two rates will be charged at a marginal rate.
There are some concerns around the complications it could create for companies whose profits fall between the £50,000 and £250,000 thresholds – this could mean that some companies could be subject to an effective corporation tax rate of around 26.5%.
The re-introduction of the small-profits rate may be welcome by the smallest companies but could cause headaches for those whose profits lie in the margin.
From experience, we know that marginal relief calculations can be complicated, and make estimating future tax bills tricky.
Please speak to our Business Services team on 01223 810100 - to discuss effective Company Tax Planning for your business.
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