Important Update regarding UK Corporate Tax Changes

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During the Autumn of 2022, changes to UK corporate tax and personal tax regimes were subject to a number of amendments.

However, it is now confirmed that two significant changes are taking place in the near future:

The UK Government announced that from 1 April 2023, non-UK resident property companies will be subject to an increased corporate tax rate of 25%, a 6% increase compared to the current rate of 19%, tax year 2021/2022.
An existing set of rules which, have not been directly relevant for some time, will now definitely need to be taken into account and will see many companies under common control, now being viewed as ‘associated’ with each other. This can have a significant impact on the amount and dates on which UK corporate tax is payable.
The Increase in the UK Corporate Tax Rate
From 1 April 2023, corporate tax rates in the UK will vary between 19% and 25%. The previous japan mobile database single rate having been 19%.

Where a UK resident company has taxable profits of less than £50,000, the 19% small profits rate will apply. UK resident companies with profits of between £50,000 and £250,000 will pay a tapered rate of between 19% and 25%. Above the higher limit of £250,000, the 25% rate will apply to all taxable profits.

These bandings are reduced if there are associated companies, please see further details below.

Where an accounting period spans across the date of 1 April 2023, taxable profit will be split to the period before and after 1 April 2023, with differing rates applied.