Corporation Tax 2014 Reduction

Budget Dec 2012 - Corporation Tax Reduction

Corporation tax for 2013 is already known at 23% and the Smaller Companies Rate is 20%.

It was confirmed in March 2012 budget that the main Corporation tax rate in 2014 would fall from 23% to 22%.

The Chancellor confirmed that an additional cut of 1% will be made for 2014, meaning that the new Corporation Tax (CT) rate for 2014 will be reduced to 21%.  

There will also be simpler income tax scheme for self employed and partnership businesses for the tax year 2013-14, where profits can be calculated on simple cash flow through the business rather than income less expenses.  A flat rate will be charged and is very similar to the current flat rate VAT scheme.  

Back to UK Budget December 2012 Summary