Corporate taxes in the UK have increased
From April 1, 2023, changes in corporate taxation came into force in the UK, which affected the following points:
- The corporate tax rate has been increased from 19% to 25% for companies with an annual income of more than £250,000. However, for companies with an annual income of less than £50,000, the tax rate will remain at 19%.
- Changes have been made to the tax rules relating to loss carry forward, which are now capped at £2m per annum or 50% of the company’s annual profits, whichever is less.
- In addition, changes have been made to the income tax associated with the use of intellectual property, a new tax exemption for research and development has been introduced, and tax procedures have been simplified for some companies.
These changes have caused some concern in the business community, as some companies fear an increase in the tax burden. However, the UK government believes that these changes will increase government revenues, which will be used to finance various social programs and infrastructure projects.