Corporation Tax Year to 31.3.24
Profits band £
Rate %
Small profits rate
0 - 50,000
19
Marginal rate
50,001 - 250,000
26.5
Main rate
Over 250,000
25
Marginal relief fraction 3/200 For the year to 31.3.23 the main rate of corporation tax was 19%. Special rules apply to accounting periods straddling 1 April 2023. For the year to 31.3.24 the profits limits are reduced for a company with associated companies. Different rates apply for ring-fenced (broadly oil industry) profit. Capital Allowances First Year Allowance (FYA) on certain plant, machinery and cars of 0g/km 100% Corporation tax FYA (‘full expensing’) on certain new, unused plant and machinery from 1 April 2023 100%
Corporation tax FYA on new, unused long-life assets, integral features of buildings, etc. from 1 April 2023 Annual Investment Allowance £1,000,000 excluding cars Writing Down Allowance Long-life assets, integral features of buildings, cars over 50g/km
50%
6%
18%
Other plant and machinery
3%
Structures and Buildings Allowance
Pensions
2023/24
2022/23
Lifetime Allowance (LA) limit
No LA charge £1,073,100
Annual Allowance limit
£60,000
£40,000 £4,000
Money Purchase Annual Allowance £10,000
Value Added Tax
From 1.4.23 From 1.4.22
Standard rate Reduced rate
20%
20%
5%
5%
Annual Registration Limit Annual Deregistration Limit
£85,000 £83,000
£85,000
£83,000 Disclaimer: Rates are for guidance only. No responsibility for loss occasioned by any person acting/ refraining from action as a result of this information can be accepted by the authors or firm.
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