What’s ahead for companies, from rate rises to MTD.

For the past 40 years or so, corporate tax rates have decreased
steadily around the world. In 1980, the global average stood
at around 40%, but by the end of 2020 it was closer to 24% as
various countries aimed to encourage business investment.

Following the COVID-19 pandemic, as governments around the
world look to cover the costs they’ve incurred, company tax rates
could now be about to go in the opposite direction.

In Spring Budget 2021, Chancellor Rishi Sunak announced that
the UK’s main rate would increase to 25% from April 2023, at
the same time as a separate small-profits rate of 19% will
be introduced.

In this Active Practice Update we consider:

  • Changes from April 2023
  • Super-deduction
  • MTD for corporation tax

If you would like to discuss in more detail any of the issues raised with a member of our team, please call 01772 741200