Alignment from 2015
From April 2015 there will be just one rate of corporation tax in the UK, 20%.
In the 2012 Autumn Statement the Chancellor announced that in addition to the 1% reduction previously announced, the main rate of corporation tax was to be reduced by a further 1% to 21% from April 2014. There was no change to the small profits rate.
He has announced in Budget 2013 that the main rate will be cut again for Financial Year 2015 to 20%.
In overview rates will be:
|
Financial year (from 1 April)
|
Main rate
|
Small profits rate
|
|
2012
|
24%
|
20%
|
|
2013
|
23%
|
20%
|
|
2014
|
21%
|
20%
|
|
2015
|
20%
|
20%
|
There will be no more marginal or tapering relief calculations and this provides an opportunity for major simplification. We may need to do some more thinking before we rush in and cross out the associated company rules entirely, but certainly the need for these will be reduced dramatically. Exciting opportunities for reducing the administrative burden lie ahead.