{"id":2418,"date":"2023-08-08T10:39:27","date_gmt":"2023-08-08T10:39:27","guid":{"rendered":"https:\/\/aelmarkhams.co.uk\/?p=2418"},"modified":"2023-08-08T11:19:52","modified_gmt":"2023-08-08T11:19:52","slug":"new-chapter-understanding-the-updated-corporation-tax-rates-for-uk-companies","status":"publish","type":"post","link":"https:\/\/aelmarkhams.co.uk\/new-chapter-understanding-the-updated-corporation-tax-rates-for-uk-companies\/","title":{"rendered":"Updated Corporation Tax Rates for UK Companies"},"content":{"rendered":"<p><b>Introduction<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In a move to bolster the economy and encourage business growth, the United Kingdom has implemented changes to its corporation tax rates. These changes, set to take effect from April 2023, bring both opportunities and considerations for businesses operating in the UK. In this blog post, we will explore the key updates to corporation tax rates, examine their implications for UK companies, and provide examples to illustrate their impact.<\/span><\/p>\n<p><b>Revised Corporation Tax Rates and Thresholds:\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Under the new legislation, the corporation tax rates in the UK are set to undergo adjustments. Currently, the standard rate stands at 19%, which has been in place for several years. However, starting from April 2023, the rate is planned to increase incrementally, reaching 25% for large companies with profits over a specified threshold. The thresholds for the revised corporation tax rates are as follows:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Small Profits Rate (profits up to \u00a350,000): 19%<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Main Rate (profits between \u00a350,001 and \u00a3250,000): Marginal relief between 19% and 25%<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Main Rate (profits over \u00a3250,000): 25%<\/span><\/li>\n<\/ul>\n<p><strong>Marginal Rates for Profits in the \u00a350,001 to \u00a3250,000 Range:<\/strong><\/p>\n<table style=\"height: 164px;\" width=\"491\">\n<tbody>\n<tr>\n<td><b>Profits Range<\/b><\/td>\n<td><b>Marginal Tax Rate<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u00a350,001 &#8211; \u00a3250,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Gradually rises<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u00a3250,001 and above<\/span><\/td>\n<td><span style=\"font-weight: 400;\">25%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Example<\/b><span style=\"font-weight: 400;\">: Let&#8217;s consider a UK-based company with profits of \u00a3150,000. Under the new corporation tax rates, this company falls within the Main Rate category for profits between \u00a350,001 and \u00a3250,000. Instead of a flat rate of 19%, the company would face a marginal tax rate between 19% and 25%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this scenario, the company would pay 19% on the profits up to \u00a350,000. The remaining profits (\u00a3100,000) would be subject to a marginal tax rate, gradually rising from 19% to 25%. The exact tax liability would depend on the specific marginal rate applicable to each profit bracket within the \u00a350,001 to \u00a3250,000 range.<\/span><\/p>\n<p><b>Considerations for Large Companies:\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The new corporation tax rates pose considerations for large companies, particularly those with profits exceeding the \u00a3250,000 threshold. With the rate set to increase to 25%, businesses in this category may need to reassess their financial strategies and consider the potential impact on profitability. It becomes essential for these companies to work closely with tax advisors and accountants to evaluate the implications and identify appropriate tax planning strategies.<\/span><\/p>\n<p><b>Tax Planning and Structuring Opportunities:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The updated corporation tax rates also bring forth opportunities for tax planning and structuring. Companies can explore various avenues, such as optimizing capital allowances, researching tax credits and reliefs, and evaluating investment incentives, to manage their tax liabilities effectively. Collaborating with tax experts becomes crucial to navigate the changing landscape, identify applicable opportunities, and ensure compliance with tax regulations.<\/span><\/p>\n<p><b>Conclusion<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The revised corporation tax rates in the UK herald a new chapter for businesses, striking a balance between supporting SMEs and ensuring sustainable economic growth. Understanding the implications of these changes, including the thresholds and marginal rates, is crucial for companies to navigate the evolving tax landscape successfully. By leveraging professional guidance, exploring tax planning opportunities, and making informed investment decisions, businesses can adapt to the new rates and continue to thrive in the dynamic business environment of the UK.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction:\u00a0 In a move to bolster the economy and encourage business growth, the United Kingdom has implemented changes to its corporation tax rates. These changes, set to take effect from April 2023, bring both opportunities and considerations for businesses operating in the UK. In this blog post, we will explore the key updates to corporation tax rates, examine their implications &#8230; <\/p>\n<div><a href=\"https:\/\/aelmarkhams.co.uk\/new-chapter-understanding-the-updated-corporation-tax-rates-for-uk-companies\/\" class=\"more-link\">Read More<\/a><\/div>\n","protected":false},"author":7,"featured_media":2419,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[5],"tags":[9],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.7.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Updated Corporation Tax Rates for UK Companies - AEL Markhams<\/title>\n<meta name=\"description\" content=\"In a move to bolster the economy and encourage business growth, the United Kingdom has implemented changes to its corporation tax rates.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/aelmarkhams.co.uk\/new-chapter-understanding-the-updated-corporation-tax-rates-for-uk-companies\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Updated Corporation Tax Rates for UK Companies - AEL Markhams\" \/>\n<meta property=\"og:description\" content=\"In a move to bolster the economy and encourage business growth, the United Kingdom has implemented changes to its corporation tax rates.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/aelmarkhams.co.uk\/new-chapter-understanding-the-updated-corporation-tax-rates-for-uk-companies\/\" \/>\n<meta property=\"og:site_name\" content=\"AEL Markhams\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-08T10:39:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-08T11:19:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/aelmarkhams.co.uk\/wp-content\/uploads\/2023\/08\/percentage-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"ravi\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"ravi\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/aelmarkhams.co.uk\/new-chapter-understanding-the-updated-corporation-tax-rates-for-uk-companies\/\",\"url\":\"https:\/\/aelmarkhams.co.uk\/new-chapter-understanding-the-updated-corporation-tax-rates-for-uk-companies\/\",\"name\":\"Updated Corporation Tax Rates for UK Companies - AEL Markhams\",\"isPartOf\":{\"@id\":\"https:\/\/aelmarkhams.co.uk\/#website\"},\"datePublished\":\"2023-08-08T10:39:27+00:00\",\"dateModified\":\"2023-08-08T11:19:52+00:00\",\"author\":{\"@id\":\"https:\/\/aelmarkhams.co.uk\/#\/schema\/person\/62b792ae56f5e0dac348b8fb05651c19\"},\"description\":\"In a move to bolster the economy and encourage business growth, the United Kingdom has implemented changes to its corporation tax rates.\",\"breadcrumb\":{\"@id\":\"https:\/\/aelmarkhams.co.uk\/new-chapter-understanding-the-updated-corporation-tax-rates-for-uk-companies\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/aelmarkhams.co.uk\/new-chapter-understanding-the-updated-corporation-tax-rates-for-uk-companies\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/aelmarkhams.co.uk\/new-chapter-understanding-the-updated-corporation-tax-rates-for-uk-companies\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/aelmarkhams.co.uk\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Updated Corporation Tax Rates for UK Companies\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/aelmarkhams.co.uk\/#website\",\"url\":\"https:\/\/aelmarkhams.co.uk\/\",\"name\":\"AEL Markhams\",\"description\":\"Chartered Accountants &amp; Business Advisors\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/aelmarkhams.co.uk\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/aelmarkhams.co.uk\/#\/schema\/person\/62b792ae56f5e0dac348b8fb05651c19\",\"name\":\"ravi\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/aelmarkhams.co.uk\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/082a5a26faffc9b19ef40179107d66d0?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/082a5a26faffc9b19ef40179107d66d0?s=96&d=mm&r=g\",\"caption\":\"ravi\"},\"url\":\"https:\/\/aelmarkhams.co.uk\/author\/ravi\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Updated Corporation Tax Rates for UK Companies - AEL Markhams","description":"In a move to bolster the economy and encourage business growth, the United Kingdom has implemented changes to its corporation tax rates.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/aelmarkhams.co.uk\/new-chapter-understanding-the-updated-corporation-tax-rates-for-uk-companies\/","og_locale":"en_GB","og_type":"article","og_title":"Updated Corporation Tax Rates for UK Companies - AEL Markhams","og_description":"In a move to bolster the economy and encourage business growth, the United Kingdom has implemented changes to its corporation tax rates.","og_url":"https:\/\/aelmarkhams.co.uk\/new-chapter-understanding-the-updated-corporation-tax-rates-for-uk-companies\/","og_site_name":"AEL Markhams","article_published_time":"2023-08-08T10:39:27+00:00","article_modified_time":"2023-08-08T11:19:52+00:00","og_image":[{"width":2560,"height":1707,"url":"https:\/\/aelmarkhams.co.uk\/wp-content\/uploads\/2023\/08\/percentage-scaled.jpg","type":"image\/jpeg"}],"author":"ravi","twitter_card":"summary_large_image","twitter_misc":{"Written by":"ravi","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/aelmarkhams.co.uk\/new-chapter-understanding-the-updated-corporation-tax-rates-for-uk-companies\/","url":"https:\/\/aelmarkhams.co.uk\/new-chapter-understanding-the-updated-corporation-tax-rates-for-uk-companies\/","name":"Updated Corporation Tax Rates for UK Companies - AEL Markhams","isPartOf":{"@id":"https:\/\/aelmarkhams.co.uk\/#website"},"datePublished":"2023-08-08T10:39:27+00:00","dateModified":"2023-08-08T11:19:52+00:00","author":{"@id":"https:\/\/aelmarkhams.co.uk\/#\/schema\/person\/62b792ae56f5e0dac348b8fb05651c19"},"description":"In a move to bolster the economy and encourage business growth, the United Kingdom has implemented changes to its corporation tax rates.","breadcrumb":{"@id":"https:\/\/aelmarkhams.co.uk\/new-chapter-understanding-the-updated-corporation-tax-rates-for-uk-companies\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/aelmarkhams.co.uk\/new-chapter-understanding-the-updated-corporation-tax-rates-for-uk-companies\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/aelmarkhams.co.uk\/new-chapter-understanding-the-updated-corporation-tax-rates-for-uk-companies\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/aelmarkhams.co.uk\/"},{"@type":"ListItem","position":2,"name":"Updated Corporation Tax Rates for UK Companies"}]},{"@type":"WebSite","@id":"https:\/\/aelmarkhams.co.uk\/#website","url":"https:\/\/aelmarkhams.co.uk\/","name":"AEL Markhams","description":"Chartered Accountants &amp; Business Advisors","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/aelmarkhams.co.uk\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-GB"},{"@type":"Person","@id":"https:\/\/aelmarkhams.co.uk\/#\/schema\/person\/62b792ae56f5e0dac348b8fb05651c19","name":"ravi","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/aelmarkhams.co.uk\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/082a5a26faffc9b19ef40179107d66d0?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/082a5a26faffc9b19ef40179107d66d0?s=96&d=mm&r=g","caption":"ravi"},"url":"https:\/\/aelmarkhams.co.uk\/author\/ravi\/"}]}},"jetpack_featured_media_url":"https:\/\/aelmarkhams.co.uk\/wp-content\/uploads\/2023\/08\/percentage-scaled.jpg","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p8vhEY-D0","jetpack-related-posts":[{"id":1903,"url":"https:\/\/aelmarkhams.co.uk\/october-2021-budget-what-you-need-to-know\/","url_meta":{"origin":2418,"position":0},"title":"October 2021 Budget &#8211; What You Need To Know!","date":"October 28, 2021","format":false,"excerpt":"Chancellor Rishi Sunak presented his 2021 Budget on Wednesday 27th October 2021. The key announcements are summarised below; Businesses The main rate of corporation tax will remain at 19% until April 2023. From this date the main rate will increase to 25%, with a Small Profits Rate of 19% for\u2026","rel":"","context":"In &quot;AEL News&quot;","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/aelmarkhams.co.uk\/wp-content\/uploads\/2021\/10\/PRI_207051488-640x360-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":1434,"url":"https:\/\/aelmarkhams.co.uk\/budget2020\/","url_meta":{"origin":2418,"position":1},"title":"2020 Budget &#8211; What&#8217;s in store?","date":"March 17, 2020","format":false,"excerpt":"Chancellor Rishi Sunak presented his 2020 Budget on Wednesday 11th March. We have summarised the top headlines business owners and employees need to be aware of: Business Owners Corporation tax: The main rate of corporation tax will remain at 19% for 2020\/21 Employment Allowance: Employer National Insurance Contributions is increasing\u2026","rel":"","context":"In &quot;AEL News&quot;","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/aelmarkhams.co.uk\/wp-content\/uploads\/2020\/03\/NEW-copy.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":2009,"url":"https:\/\/aelmarkhams.co.uk\/growth-plan\/","url_meta":{"origin":2418,"position":2},"title":"Mini Budget 2022 Statement \u2013 What You Need To Know","date":"October 5, 2022","format":false,"excerpt":"Chancellor Kwasi Kwarteng presented his 2022 growth plan on Friday 23rd September 2022. The Chancellor's statement was not a Budget, but a 'Growth Plan'. The key announcements are summarised below; Stamp Duty Land Tax No stamp duty to be paid on the first \u00a3250,000 \u2013 up from \u00a3125,000. First-time buyers\u2026","rel":"","context":"In &quot;AEL News&quot;","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/aelmarkhams.co.uk\/wp-content\/uploads\/2022\/09\/efwfewfew.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":2222,"url":"https:\/\/aelmarkhams.co.uk\/hmrcinterestrates\/","url_meta":{"origin":2418,"position":3},"title":"HMRC Interest Rates and Penalties for Late Filings \u2013 What You Need To Know","date":"December 5, 2022","format":false,"excerpt":"With the interest rates in banks changing, HMRCs interest rates for late payment and repayments of tax have also changed. HMRC interest rates are set in legislation and are linked to the Bank of England base rate. There are 2 rates: late payment interest, set at base rate plus 2.5%\u2026","rel":"","context":"In &quot;AEL News&quot;","img":{"alt_text":"HMRC","src":"https:\/\/i0.wp.com\/aelmarkhams.co.uk\/wp-content\/uploads\/2022\/12\/H2ow-to-close-a-company-with-HMRC-debts.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":9362,"url":"https:\/\/aelmarkhams.co.uk\/budget-2024\/","url_meta":{"origin":2418,"position":4},"title":"March 2024 BUDGET &#8211; What you need to know!","date":"March 7, 2024","format":false,"excerpt":"Overview These key points include measures that were announced previously but are about to come into force. Measures which have been announced but will not take effect during 2024 are listed separately below. Personal tax The main personal tax-free allowance (\u00a312,570) and the 40% tax rate threshold (\u00a350,270) remain frozen\u2026","rel":"","context":"In &quot;AEL News&quot;","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/aelmarkhams.co.uk\/wp-content\/uploads\/2024\/03\/65e87f4676520561588530.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":9375,"url":"https:\/\/aelmarkhams.co.uk\/spring-2024-budget-personal-income-tax\/","url_meta":{"origin":2418,"position":5},"title":"Spring 2024 Budget \u2013 Personal Income Tax","date":"March 22, 2024","format":false,"excerpt":"Personal Income Tax Tax rates and allowances \u2013 2024\/25 (Click Link - Page 2) The Autumn Statement included the announcement that the main personal allowance and the 40% threshold will remain at their 2022\/23 levels until the end of 2027\/28. This represents a tax increase where income rises from year\u2026","rel":"","context":"In &quot;AEL News&quot;","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/aelmarkhams.co.uk\/wp-content\/uploads\/2024\/03\/pexels-nataliya-vaitkevich-6919716-scaled.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/posts\/2418"}],"collection":[{"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/comments?post=2418"}],"version-history":[{"count":2,"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/posts\/2418\/revisions"}],"predecessor-version":[{"id":2421,"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/posts\/2418\/revisions\/2421"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/media\/2419"}],"wp:attachment":[{"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/media?parent=2418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/categories?post=2418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/tags?post=2418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}