Corporate tax rates and small profits thresholds from 2023.
To balance the need to raise revenue with the objective of having an internationally competitive tax system, the rate of Corporation Tax will increase to 25%, which will remain the lowest rate in the G7. In order to support the recovery, the increase will not take effect until 2023. Businesses with profits of £50,000 or less, around 70% of actively trading companies, will continue to be taxed at 19%. A tapered rate will also be introduced for profits above £50,000, so that only businesses with profits of £250,000 or greater will be taxed at the full 25% rate.
Corporation tax rates
|Financial year 2020-21||Financial year 2021-22||Financial year 2022-23||Financial year 2023-24|
|Small profits rate||N/A||N/A||N/A||19%|