Small profit and main rates of CT make a come-back, along with marginal rate relief
The chancellor announced the return of the small profit rate and main rate of corporation tax from April 2023. The applicable corporation tax rates will be 19% and 25%. Businesses with profits of £50,000 or below would still only have to pay 19% under small profit rate.
The full rate of 25% is only applicable for the businesses making profits of over £250,000. Businesses earning profits between £50,000 to £250,000 will be able to claim marginal relief which was long forgotten about a decade ago. Mostly it is calculated by the software; however, there will be an updated calculator on gov.uk to work out the marginal relief manually.
The proposed corporation tax rates will be: