18% Rate rise

[hugebrain]

The corporation tax rate is tapered between £50,000 to £250,000

only above £250,000 is it 25%

It sounds like the taper is not much use sadly. According to this:


“The accounts for XYZ Ltd show total profits (taxable and augmented profits) of £190,000 for the year to 31 March 2024. The company has no associated companies. Marginal relief applies because profits fall between £50,000 and £250,000.

Calculations show that XYZ Ltd is entitled to £900 of marginal relief. This has the effect of slightly reducing the rate of corporation tax payable on all profits by 0.48% to 24.53%.

Therefore, instead of paying 25% on profits of £190,000 (£47,500), the company pays 24.53% of £190,000 (£46,600).”

[AtW]

It sounds like the taper is not much use sadly. According to this:


“The accounts for XYZ Ltd show total profits (taxable and augmented profits) of £190,000 for the year to 31 March 2024. The company has no associated companies. Marginal relief applies because profits fall between £50,000 and £250,000.

Calculations show that XYZ Ltd is entitled to £900 of marginal relief. This has the effect of slightly reducing the rate of corporation tax payable on all profits by 0.48% to 24.53%.

Therefore, instead of paying 25% on profits of £190,000 (£47,500), the company pays 24.53% of £190,000 (£46,600).”

It’s the same (tulip) way previous (under Brown, later under Osborne rates weee unified so no need for taper) taper operated - it was designed to go up much quicker than ine would assume, very nice con, but at least it started at 300k and upper level was high, now it’s total bulltulip at 50k