Change to Corporation Tax Charge and Rates
On 1st April 2023, the Corporation Tax main rate for non-ring fenced profits over £250,000 will be increased to 25%. A new small profits rate of 19% has also been introduced for companies with profits of £50,000 or less. Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective Corporation Tax rate.
Businesses could reduce the effect of this new CT rate by investing in innovation and receiving a reduction in the amount of Corporation Tax they have to pay with any qualifying R&D activity.
Affected Businesses: Companies and unincorporated associations that pay Corporation Tax.
Effective From: 1st April 2023
Corporation Tax Charge and Rates Measure