The 2018/19 corporation tax rate is 19%. However, there is currently a downward trend for future corporation tax rates in the UK and further progressive cuts to 17% by 2020 have been announced.
The 2018/19 corporation tax rate is 19%. However, there is currently a downward trend for future corporation tax rates in the UK and further progressive cuts to 17% by 2020 have been announced.
If the company is based in the UK, it pays corporation tax on all its profits from the UK and abroad.
There has been a steady fall in corporation tax rates which companies pay on any taxable profits. Corporation tax (main rate) was reduced:
Corporation Tax rates have been steadily falling over many years, the headline rate of corporation tax being the tax due on company profits for the given accounting period. Corporate investors should be encouraged by this to consider investing any excess money (rather than holding it on deposit) as they can now expect to pay reduced rates of corporation tax on future investment gains.
Recent year-on-year reduction in corporation tax now makes investing surplus cash more attractive.
The value of investments and the income they produce can fall as well as rise, you may get back less than you invested.
Tax treatment varies according to individual circumstance and is subject to change.