Budget predictions: Corporation tax
Ahead of the first ever Autumn Budget, Nimesh Shah and Helena Kanczula discuss what the Chancellor could, should and will announce with regard to corporation tax.
- Corporation tax has been confirmed to be reduced to 17% from 1 April 2020, but the Chancellor will announce a further reduction to 15% to encourage businesses to remain in the UK in wake of the Brexit negotiations. (Nimesh Shah, partner)
- For many years, tax simplification has been discussed. For very small companies, tax administration represents a significant burden. HM Revenue & Customs should now look at whether for some companies, the accounts should simply be used as a basis for calculating corporation tax and straightforward transitional rules could be introduced. (Helena Kanczula, corporate tax director)
- A review of whether there would be any merit for smaller UK only groups to produce one annual consolidated tax return should be conducted. (Helena Kanczula, corporate tax director).
For more information please contact Nimesh Shah
or Helena Kanczula.