News: January 2015
Corporation tax rates
| Profits | 31/3/15 (FY2014) | 31/3/16 (FY2015) |
|---|---|---|
| First £300,000 | 20% | 20% |
| Between £300,000 and £1.5m | 21.25% | 20% |
| Over £1.5m | 21% | 20% |
As previously announced there will be a single 20% rate of corporation tax regardless of the level of the company’s profits from 1 April 2015 onwards.
Although a 20% rate will generally apply to corporate profits from 1 April 2015, a new “diverted profits tax” charge at 25% will apply to profits that are artificially shifted from the UK to an entity in a low tax country.
This is part of a number of measures to counter tax avoidance by multi-national companies. It will be interesting to see if the new measures will bring in additional tax revenue from such companies.
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