Contact Us

**The Prime Minister announced on 14th October 2022, that the originally planned corporation tax rate increases will still go ahead.The below article is out of date, please read here for the proposed increases.**

The Government had planned an increase in the main rate of Corporation Tax from April 2023 from 19% to 25% for companies making profits in excess of £250,000. This would also have affected companies earning profits between £50,000 and £250,000. Companies whose profits were below £50,000 would have been unaffected by the increase. 

The Growth Plan’s commitment to cut taxes for individuals and businesses and to remain competitive compared to other countries means that the planned increase has now been cancelled with the rate remaining at 19%, supporting investment, innovation and economic growth in the UK. 

Banks and Building Societies pay a higher rate of corporation tax than other businesses via a surcharge for which there was also a planned reduction which now won’t go ahead since the main rate of corporation tax will remain unchanged. 

There are now plans to adjust the “super-deduction” rules, which were introduced in April 2021 as a new 130% first year capital allowance for limited companies investing in qualifying plant and machinery.  

The “super-deduction” rules were introduced to encourage companies to continue with capital projects rather than wait until the corporation tax rate increased in April 2023. Now that the corporation tax rate won’t increase, it is anticipated that changes to the technical provisions will be published to ensure the relief continues to operate as intended. 

There were also plans to reduce the Annual Investment Allowance threshold from £1 million to £200,000 from April 2023, however this reduction will also not now go ahead, which will benefit sole traders and partners of trading partnerships as well as companies with significant planned capital expenditure. 

Date published 23 Sep 2022 | Last updated 17 Oct 2022

Choose the right accounting firm for you

Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?

Local business focus icon

Local business focus

We specialise in supporting independent businesses and work with 80,684 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.

Come and meet us icon

Come and meet us

We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.

Switching is simple icon

Switching is simple

Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.

See how TaxAssist Accountants can help you with a free, no obligation consultation

0800 0523 555

Or contact us