It has been well publicised that Rishi Sunak is considering raising UK corporation tax (currently 19%) in the Budget on 3 March 2021 to start to address balancing the books for the costs of Covid.
He has said that corporation tax rises are the most equitable way to raise revenues as it will only hit UK businesses who have made profits. A rise of 5% to 24% has been mooted, leaving less profit after tax for future investment and extraction by business owners.
Our latest briefing note ‘Tax Planning for Higher UK Corporation Tax Rates‘ considers planning opportunities ahead of any rate rise that may occur. However, every company will have its own unique tax position, especially if there are tax losses available and so early advice should be taken before implementing any planning ideas.
How can Beavis Morgan help?
We can conduct a Corporation tax review to assist planning for a UK corporation tax rise.
To find out more, please contact Fiona Cross, Tax Partner, Beavis Morgan, for a no obligation discussion.