Blick Rothenberg

Further reduction in UK corporate tax rate

12.01.2015

From 1 April 2015, the main UK rate of corporate income tax will drop from 21% to just 20%. This will be a universal rate, payable by all UK companies and branches on their profits, regardless of size.

The introduction of a single corporate tax rate is intended to simplify the UK tax system for companies and further enhance the UK’s competitiveness within Europe.

At 20%, the rate of tax on corporate profits in the UK is substantially lower than in most other major European countries, including the Netherlands (25%), Luxembourg (29.22%), Germany (up to 33%, depending on region) and France (33.33%).