From 1 April 2023 the main rate of Corporation Tax will increase from 19% to 25%.
The small profits rate (19%) will apply to single companies with profits of less than £50,000 and the Main rate of 25% will apply to companies with profits above £250,000.
Marginal relief will be given for companies with profits between £50,000 (lower limit) and £250,000 (upper limit).As a result of this corporation tax rate increase, any profits between £50,000 and £250,000 will effectively be taxed at 26.5% due to the marginal relief rates .
The upper and lower limits of the new chargeable profits bands will be apportioned according to the number of companies which are Associated for Corporation Tax.
The thresholds for marginal relief will also be apportioned for short accounting periods here is a link on how to calculate Marginal Relief for Corporation Tax https://www.tax.service.gov.uk/marginal-relief-calculator
Contact TAKS Limited -Bristol accountants on 0117265052 if you have any queries on the Corporation tax rate increase or if you need any assistance with the preparation and submission of your business accounts returns to HMRC.
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