Corporation Tax - 2023 Increased to 25% on Profits Over £250K
Posted: June 23rd, 2022, 2:46 pm
From April 2023 Corporation tax is changing.
On this occasion changing means increasing
Corporation Tax charge and rates from 1 April 2022 and Small Profits Rate and Marginal Relief from 1 April 2023
Legislation will be introduced in Finance Bill 2021 to set the charge to Corporation Tax and set the main rate of Corporation Tax for all non-ring fence profits to 19% for Financial Year 2022 and to set the charge to Corporation Tax and set the main rate at 25% for Financial Year 2023.
Legislation will also introduce a small profits rate and will set this at 19%.
The small profits rate will apply to profits below the lower limit of £50,000 and profits exceeding the upper limit of £250,000 will be charged at the main rate.
I've not looked into this in great detail [yet]. My initial thought is that share holders are going to be taxed an additional 6% as I doubt most companies will be able to pass that sort of increase onto their customers. I suspect that those who rely on dividends are being taxed directly unless the PLC they are invested in raises it's dividend to compensate. Have I understood this correctly?
AiY(D)
On this occasion changing means increasing
Corporation Tax charge and rates from 1 April 2022 and Small Profits Rate and Marginal Relief from 1 April 2023
Legislation will be introduced in Finance Bill 2021 to set the charge to Corporation Tax and set the main rate of Corporation Tax for all non-ring fence profits to 19% for Financial Year 2022 and to set the charge to Corporation Tax and set the main rate at 25% for Financial Year 2023.
Legislation will also introduce a small profits rate and will set this at 19%.
The small profits rate will apply to profits below the lower limit of £50,000 and profits exceeding the upper limit of £250,000 will be charged at the main rate.
I've not looked into this in great detail [yet]. My initial thought is that share holders are going to be taxed an additional 6% as I doubt most companies will be able to pass that sort of increase onto their customers. I suspect that those who rely on dividends are being taxed directly unless the PLC they are invested in raises it's dividend to compensate. Have I understood this correctly?
AiY(D)