The UK government has announced an increase in the corporation tax rate to 25% from 1 April 2023, affecting companies with profits of £250,000 and over. Small companies with profits up to £50,000 will continue to pay corporation tax at 19%, while profits between these two figures will be subject to a tapered rate.
Additionally, Finance Act 2021 has increased diverted profits tax to 31% from 1 April 2023 to maintain its six percentage point differential with the main corporation rate.