The chancellor confirmed that from 1 April 2023 the main rate of corporation tax will be 25% with a small profits rate of 19%.
On capital allowances the government will introduce full expensing for the next three years. Companies incurring qualifying expenditure on the provision of new plant and machinery on or after 1 April 2023 but before 1 April 2026 will be able to claim one of two temporary first-year allowances. These are:
- a 100% first-year allowance for main rate expenditure – known as full expensing; and
- a 50% first-year allowance for special rate expenditure.
Sheena McGuinness corporation tax partner at RSM UK said: ‘The death of the super-deduction was confirmed by the chancellor and you didn’t need to be the Nostradamus of tax to predict that incentive being withdrawn. Instead 100% of capital spend by companies can be deducted...
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