Recent changes to Corporation Tax thresholds have introduced a tiered system where tax rates depend on company profit levels. Businesses must now assess whether marginal relief applies and consider the implications for future tax planning.
Tiered rates and marginal relief
Profits are no longer taxed at a single flat rate for all companies. The small profits rate and main rate interact with thresholds that depend on your accounting period and, where relevant, the number of associated companies.
What to review
- Forecast taxable profits and how they sit against rate bands.
- Check whether marginal relief applies and how it affects the effective rate.
- Align dividends and remuneration decisions with the company's tax position.
How we can help
We can model your corporation tax liability, explain marginal relief in plain terms, and help you plan ahead. Contact us for advice tailored to your company.