There are numerous developments in tax for small and medium sized companies to keep an eye on that came into play in April of this year. If you are in a position whereby you may be impacted by these, here are some further details on the developments.
Company tax rates
Remain at 19% for FY 2018 and 2019.
Will reduce to 17% from April 1st 2020
Corporation tax payments
For accounting periods commencing April 1st, 2019:
Companies with annual profits in excess of £20m now pay CT (Corporation Tax) four months earlier than other large companies.
For a 12-month period, payments will be made in months 3,6,9 and 12.
Currently companies with annual profits in excess of £1.5m make payments in months 7 and 10, with final payments made in month 1 and 4 of the following a/p.
Annual Tax on Enveloped Dwellings (ATED)
From April 1st, 2019, ATED charges to rise by an average of 2%, compared to 2.9% in the previous year. This will be based on the market value of properties on April 1st 2017, or cost price if acquired after this date.
Non-resident companies
From April 6th, 2019, Finance Act 2019 provides that:
Non-UK resident companies will move into corporation tax in respect of their disposals of UK property instead of CGT.
Non-UK resident companies will be taxed on all gains arising on all disposals of UK immoveable property (i.e. both residential and commercial).
Non-resident CGT will also apply to indirect disposals of interests in property rich entities – so where companies or other entities with 75% or more of gross assets are represented by UK land and property. For example, this could be shareholding in a property investment company or partnership.
If you would like to discuss any recent changes further, or have questions about any other tax changes, please don’t hesitate to get in touch.
