Corporation Tax

Rate of tax

The Corporation Tax rate is unchanged at 25% for companies with profits over £250,000. The ‘small profits rate’ remains 19% for companies with profits of up to £50,000. Between £50,000 and £250,000 there is a tapering calculation that produces an effective marginal rate of 26.5% on profits between these limits, but an average rate on all profits of between 19% and 25%. The limits are divided between companies that have been under common control at any time in the previous 12 months, whether UK resident or not.

Capital allowances for plant and machinery

In 2023, ‘full expensing’ (100% relief for the cost in the year of purchase) was introduced for most plant and machinery. It is not currently available to companies that buy plant to lease out to other businesses. The Chancellor announced that ‘the Government will seek to extend full expensing to leased assets ‘when fiscal conditions allow’ and will publish draft legislation shortly

Find more about The Spring Budget here:

The Spring Budget 2024 is here!