Corporation tax rates set to remain low
The current rate of corporation tax
Set at 20% for companies with profits under £300,00 and 21% otherwise, it’s one of the most competitive in the G7.
The 2014 Budget has already stated that from April 2015 there is to be a single 20% corporation tax rate for all companies regardless of profits and in addition to this, the Labour party has further announced that it intends to keep corporation tax rates low should it win the 2015 election.
This is an attempt to win back votes from businesses after a series of recent Labour announcements have not been well received by focus groups.
Are there any further cuts in the pipeline?
As the current rate for corporation tax is an all time low for the UK and compared to the 28% rate of 4 years ago, any further cuts in corporation tax rates look highly unlikely in the short term.
However, part of Labour’s recent promise is to build and develop a business tax system that encourages long-term investment and innovation as well as aims to make cuts to business rates, another topical subject.
Again, it’s good news for dentists and medical consultants trading as limited companies.
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Read our related article to find out more: Why Incorporation makes more sense than ever