Corporation tax


Written by Ray Coman





2022-23 2021-22
Corporation Tax 19%                         19%
Loans to participators 32.50% 32.50%


The corporation tax rate is divided by the number of associated companies. For these purposes, two companies are associated where one has control of the other or both are under the control of the same person. An associated company includes foreign companies but excludes dormant companies. The above thresholds are reduced if the period is less than 12 months.


The rate of corporation tax is increasing from 19% from 1 April 2023.


On 1 April 2023 the rate of corporation tax will increase from 19% to 25%. Businesses with profits of less than £50,000 will continue to enjoy the lower rate of 19%. Once profits exceed £50,000 a tapering will be introduced. Only business with profits of £250,000 or greater taxed at full rate.


Effective April 2021, companies will be able to carry back losses up to £2 million to the preceding three years. The measure will be particularly valuable to companies that have suffered losses as a result of Covid.



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