Spring Budget 2020 – Corporation Tax
The Corporation Tax main rate will remain at 19% from 1 April 2020. The main rate had been expected to reduce to 17%. However, this reduction was always in doubt after the Conservative election manifesto promised to reverse this announcement.
It has also been confirmed that the Corporation Tax main rate will remain at 19% for the following financial year beginning 1 April 2021. The Chancellor in his Budget speech was keen to stress that even at 19% the UK’s Corporation Tax rate remains the lowest in the G7 and G20.
Some businesses within the quarterly instalment payment regime may have made insufficient payments as a result of calculating their Corporation Tax liability by reference to the 17% rate. HMRC has said that they will work to provide guidance as soon as possible and to advise the correct rate.