The Chancellor announced that taxes would have to rise, but not quite yet, as all tax rates except for VAT are frozen for 2021-22.
Large companies will then see their corporation tax rate rise from 19% to 25% from 1 April 2023.
Companies making no more than £50,000 year in profits will still pay tax at the current rate of 19%. There will be a system of marginal relief on corporate profits between £50,000 and £250,000, above which the tax rate will be set at 25%.
Companies making no more than £50,000 per year in profits will still pay tax at the current rate of 19%.
Complexity is added for groups and associated companies as the profit thresholds of £50,000 and £250,000 will have to be divided by the number of associated companies. The companies counted as being in a group or associated will be those which are under the common control of a person, a company or a group of persons.
Family companies which are not trading will also pay corporation tax at 25% on all profits
We can work with you to calculate the most tax efficient way to structure your group and extract profits from your company from April 2023.
Further information can be found on the gov.uk website