2023 Corporation Tax Changes

The following article is based on the corporation tax changes that are planned to take effect from 1 April 2023. However, with the current changes occurring within the British government, it is highly possible that Liz Truss’s government may decide to scrap these changes entirely. Currently the plans for corporation tax changes are as follows.

The increase in corporation tax in 2023 will see the return of the small profit rate and main corporation tax rate.

Once the increase takes effect from 1 April 2023, the corporation tax rates will be:

  • 19% for businesses with £50,000 or less
  • 25% for those with profits over £250,000
  • a marginal rate between £50,000 and £250,000

Companies with taxable profits between £50,000 and £250,000 will pay tax at the 25% rate reduced by a marginal relief such that overall, they will pay on a sliding scale between 19% and 25%.

Increases due to take effect from 1 April 2023

This change to the corporation tax regime is one of the most significant tax rises to hit companies for years. We can assist you with any queries on the Corporation tax rate increase and with the preparation and submission of your business accounts or self-assessment tax returns. Contact us on 0800 169 3278.

We are here to help

We can help you to:

  • accelerate profits so that they are taxable in the financial year 2022, rather than after 1 April 2023
  • delay expenses to secure relief at a higher rate 
  • look at carrying losses forward to take advantage of later relief at a higher rate, or back to gain earlier relief at a lower rate 
  • understand the impact of associated companies and whether restructuring would be beneficial

What should you do?

It is essential to be aware of the changes that are taking place from April 2023 that will affect your business. If you have any questions about these changes, you should speak to a qualified tax adviser. Get in touch with F9 today on 0800 169 3278.

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