April 2023 corporation tax rate increases

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%.

Information are made available to you only as self-help tools for your independent use and are not intended to provide investment or tax advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.