Corporation Tax

 

Corporation Tax Rates

The Chancellor announced that there would be no change to the plan revealed in Budget 2016 that the Corporation Tax main rate will remain at 19% for the years beginning 1 April 2018 and 2019 having fallen from 20% at 1 April this year.    

The Government had also announced in the previous budget that the Corporation Tax main rate will be further reduced to 17% from 1 April 2020.    

The above changes clearly benefit corporations and family businesses of all sizes, with the cut in Corporation Tax forming part of the Government’s stated aim of making the UK an attractive place to do business. 

Indexation Allowance

The indexation allowance which aims to negate the effects of inflation on corporate capital gains is to be frozen from 1 January 2018.  The effect of this is that no relief will be available for inflation accruing after this date for companies selling chargeable assets.  Relief from the date of acquisition through to 1 January 2018 will continue to be available for disposals after this date.

The indexation allowance freeze brings the corporate gains rules in line with individuals and trusts, both of whom do not currently benefit from a relief linked to inflation.   

ATED

The annual chargeable amounts for the Annual Tax on Enveloped Dwellings (ATED) will be increased by inflation for the 2018/19 chargeable period which begins on 1 April 2018.

For residential properties valued above the threshold of £500,000 up to £1,000,000, which are not eligible for relief, this will increase the annual charge to £3,600. The annual charges for higher value properties are similarly increased.

Making Tax Digital

There were no new announcements on Making Tax Digital (MTD), but the Government confirmed:

  • No business or individuals will be forced to use MTD before April 2019.
  • Only businesses with a turnover above the VAT threshold – which will stay at £85,000 for another two years – will be affected.
  • It is only VAT return information that will be included in 2019.
  • MTD will be extended to income tax, including businesses with turnover under the VAT threshold, only when the system “has been shown to work well”, which will be April 2020 at the earliest.

Our handy Tax Facts Pocket Guide provides you with the rates and figures you need to manage your personal and business finances.

Autumn Budget News

Budget Highlights for UK Manufacturing

Whilst the recent budget didn’t throw up any significant headline announcements for our Manufacturing Sector, there were various items outlined which should have a positive impact on the sector, including: Research & Development

Budget Review for Retail Sector

There are number of areas in the Autumn Budget that will impact on the retail sector.

Impact of the Budget for Family Businesses

It will come with little surprise that the second budget of 2017 failed to offer significant headline announcements, despite the rumour mill going in to overdrive during the past few days.

Get in touch

To find out more about how we can help you or your business, call us on 0808 144 5575 and speak to a member of our team. Alternatively use our contact form to send us a message or arrange a callback.

CALL 0808 144 5575

or

Contact Us

All content © 2015 Armstrong Watson. All Rights Reserved. Website by Simon Pighills.

Armstrong Watson LLP is a limited liability partnership registered in England and Wales, number OC415608. The registered office is 15 Victoria Place, Carlisle, CA1 1EW where a list of members is kept. Armstrong Watson Accountants, Business & Financial Advisers is a trading style of Armstrong Watson LLP. Armstrong Watson LLP is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities.

Armstrong Watson Audit Limited is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. Registered as a limited company in England and Wales No. 8800970. Registered office: 15 Victoria Place, Carlisle, CA1 1EW

Armstrong Watson Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 542122. Registered as a limited company in England and Wales No. 7208672. Armstrong Watson Financial Planning & Wealth Management is a trading name of Armstrong Watson Financial Planning Limited. Registered Office: 15 Victoria Place, Carlisle, CA1 1EW