News: January 2015
Corporation tax rates
|Profits||31/3/15 (FY2014)||31/3/16 (FY2015)|
|Between £300,000 and £1.5m||21.25%||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.