No new announcement was made in the Autumn 2021 Budget in respect of the rate of corporation tax, although the previously announced increase was confirmed.

  • This will see the main rate of corporation tax increase from 19% to 25% for companies with profits in excess of £250,000;
  • Companies with profits of up to £50,000 are still taxed at 19%;
  • The system of marginal rate relief means that the effective rate of tax for profits that fall within the band between the two thresholds will be 26.5%; and
  • These thresholds are reduced where companies are associated with each other.