Corporation Tax Drop

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Over one million companies* look set to benefit from reductions in Corporation Tax scheduled until the year 2020.

The Corporation Tax main rate commencing April 1, 2017 has been set at 19%; dropping to 17% for the financial year beginning April 1, 2020.

Corporation Tax must be paid by the following businesses:

  • Limited company
  • Any foreign company with a UK branch or office
  • A club, co-operative or other unincorporated association, e.g. a community group or sports club

“You don’t receive a bill for Corporation Tax, the amount you owe is worked out by completing a Corporation Tax Return (CT600),” said Peter Way-Rider, tax manager at Ellis & Co.

“We prepare and submit hundreds of these documents every year, you will receive a penalty for inaccurate or late returns; therefore it important it is filed correctly.

“This drop in Corporation Tax is great news for businesses and for the UK - which will have the lowest Corporation Tax in the G20 by 2020.”

For further information about Corporation Tax, or any other Tax matter contact Peter on 01244 343504.

*HM Revenue & Customs