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Budget 2011

23 Mar 11

The Chancellor has now finished speaking and has announced a series of tax changes both good and bad.

Associated companies – corporation tax change

23 Mar 11

In December last year draft proposals were put together to eliminate commonly controlled companies as “associates”. What does this mean? Practically, if you control a company and your spouse controls a second company, they would have been “associated” for tax purposes. This could have resulted in higher tax payments.

Corporate tax rates

24 Mar 11

The Chancellor announced that instead of the main rate of Corporation Tax being reduced to 27% with effect from 1 April 2011, this will now be 26%. He has also stated that for 2012 the rate will be reduced further to 25%.

Spofforths 2011 budget summary and tax cards

24 Mar 11

A summary of the 2011 Budget and a 2011/12 tax card available to download.

corporation tax - compulsory e-filing is here

6 Apr 11

After a lot of build up, compulsory e-filing of corporation tax returns, computations and accounts with HMRC is now here for all companies and other bodies required to submit corporation tax returns. These new rules apply to year ends after 31 March 2010.

the chancellor reiterated the planned decrease in the main rate of corporation tax to 25% from April 2012

12 Dec 11

Whilst the Chancellor's Autumn Statement was not intended to be a pre-budget report a few tax points were mentioned. One clear message was that the main rate for Corporation Tax will be reduced to 25% from April 2012 as previously announced. We are expecting the main rate of Corporation Tax to fall further - to 24% from April 2013 and to 23% from April 2014. These reductions are part of the package to achieve the Chancellor's stated objective of making the UK the most competitive tax system in the G20.

reduction in corporation tax announced by Chancellor

22 Mar 12

One very encouraging piece of news announced by George Osbourne was the reduction in the company’s main tax rate from 1 April this year. Rather than the proposed 26% the rate of tax payable will be reduced to 24%. The Chancellor confirmed that a further 1% reduction will be applied over the next two years meaning that by 1 April 2014, the main rate of Corporation Tax will be only 22%.

patent box - profits generated from intellectual property to be subject to corporation tax

2 May 12

An announcement made in the budget back in April include the concept of a Patent Box. From 1 April 2013 it is proposed that profits generated from Intellectual Property will be subject to a Corporate Tax rate of 10%. This reduced tax rate is designed to encourage more businesses to migrate to the UK who are working in this industry. The consultation carried out on the subject has identified that the lower rate of tax will depend on either when the patent was granted or first commercialised. Further details are to be released later this year and I am keen to see how this proposal is developed to benefit these types of businesses

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