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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