ICAEW - Member firm

Registered to carry on Audit Work in the UK and regulated for a range of Investment Business Activities by The Institute of Chartered Accountants in England and Wales
Home Page

AND CHANGES FOR 2017/2018 previously announced
(Subject to details in the Finance Bill)
Ellis Atkins have taken all due care in the presentation of these notes. No responsibility for loss occasioned to any person or company acting or refraining from action as a result of any material in these notes can be accepted by Ellis Atkins, its partners or staff. Please contact us or your own professional advisor for advice specific to your circumstances.

    • The rates of Corporation Tax are as follows:

      Year Commencing Small Companies' Rate Mainstream Rate
      1st April 2015 20% 20%
      1st April 2016 20% 20%
      1st April 2017 19% 19%
      1st April 2018 19% 19%
      • The Corporation tax rate will be cut again to 17% by 2020

      Corporation Tax Loans to participators charge

      Tax provisions are designed to prevent participators (usually shareholders and/or directors) in close companies enjoying tax free loans. Where a director’s loan account is overdrawn, a tax charge on the company arises at currently 32.5% of the loan outstanding.

      Corporation Tax: Loss Relief

      For losses incurred on or after 1 April 2017 businesses will be able to use carried forward losses against profits from other income streams or from other companies within a group.

      From 1 April 2017 there will be a restriction of 50% relating to the amount of profit that can be offset through losses carried forward. The restriction will only apply to profits in excess of £5 million.

      Corporation Tax for Museums and galleries

      From 1 April 2017 a new tax relief for museums and galleries will be available where new exhibitions are developed. Tax relief will be available of 25% for touring exhibitions and 20% for non-touring exhibitions.

      Corporation tax deduction for contributions to grassroots sport - From 1 April 2017 the tax treatment will be extended to a sport governing body and its 100% subsidiaries.

      Corporation Tax: Patent Box – cost sharing arrangements - From 1 April 2017 the tax deductions for interest expenses will be limited. Each group’s net deductions for interest will be limited to 30% of the earnings before interest, tax, depreciation and amortisation.

      Tax treatment of appropriations to trading stock – from 8 March 2017 the ability of businesses with loss making capital assets to obtain an unfair tax advantage by converting trading stock into trading losses will be curtailed.