0141 332 0392

Paxton House, No 11 Woodside Crescent, Glasgow, G3 7UL

Search Archive


Spring Budget 2021 – Corporation Tax

Source: HM Government | | 04/03/2021

The Chancellor confirmed that the Corporation Tax main rate will remain at 19% from 1 April 2021 for the next 2 years. The main rate had been expected to increase to help pay the massive costs of the coronavirus pandemic to the public purse. 

However, the Corporation Tax main rate will increase to 25% from 1 April 2023 for companies with profits over £250,000. The Chancellor also announced the introduction of a Small Profits Rate (SPR) of 19% from the same date for companies with profits of up to £50,000. 

Where a company has profits between £50,000 and £250,000 a marginal rate of Corporation Tax will apply that bridges the gap between the lower and upper limits. The lower and upper limits will be proportionately reduced for short accounting periods and where there are associated companies.

The Diverted Profits Tax (DPT) will increase from 1 April 2023 from 25% to 31% to maintain the current 6% differential with the main rate of Corporation Tax. The DPT is an anti-avoidance measure that targets large multinational businesses that are deemed to be using contrived and artificial arrangements to divert profits overseas thereby paying less or no tax in the UK.

This announcement gives some short-term relief to businesses, many of whom had expected rates to increase before April 2023. 

 

Latest News

 

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login

McAllisters is a partnership trading from Paxton House, 11 Woodside Crescent, Glasgow providing accountancy and tax services and general business advice and is a member of ICAS (Registration No 0342) and an FCA exempt professional firm (No 301235). Its VAT number is 261 3019 94

McAllisters (Scotland) Ltd is a related business providing tax and business advisory services to McAllisters and its clients. McAllisters (Scotland) Ltd is registered in Scotland (Registration number SC146856). Its VAT number is 624 0564 62.

Copyright © McAllisters 2013 – 2021

 Cookie Policy   Privacy Policy   Terms Of Use   Standard Terms of Business