UK trading companies currently pay corporation tax at the rate of 19% on their taxable profits. However, for the financial year commencing 1st April 2023, the main corporation tax rate is set to increase to 25% where profits exceed £250,000.
A new ‘small profits rate’ of corporation tax of 19% will apply where profits are £50,000 or less.
Profits between £50,000 and £250,000, they will pay Corporation tax at 25%.
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