Understanding the New Corporation Tax Landscape
The UK corporation tax system has undergone significant changes in 2024, and it's crucial for business owners to understand how these modifications might affect their operations and tax obligations.
Key Changes for 2024
1. Corporation Tax Rate Increases
The main rate of corporation tax has increased from 19% to 25% for companies with profits over £250,000. However, a small profits rate of 19% continues to apply for companies with profits of £50,000 or less, with marginal relief available for profits between £50,000 and £250,000.
2. Small Company Rate Relief
Companies with profits between £50,000 and £250,000 will benefit from marginal relief, ensuring a gradual increase in the effective tax rate rather than a cliff-edge jump to 25%.
3. Planning Opportunities
Duncan's Expert Tip
"With the new corporation tax rates, it's more important than ever to plan ahead. We're helping our clients restructure their affairs to minimize the impact of these changes. Contact us for a free consultation to discuss your specific situation."
What This Means for Your Business
These changes represent the most significant shift in UK corporation tax policy in recent years. For many businesses, this will mean higher tax bills, but with proper planning, the impact can be minimized.
At Duncan Joyce & Associates, we're working closely with our clients to ensure they're prepared for these changes and taking advantage of all available reliefs and allowances.