Summer Budget 2015 – Company tax rates and allowances | Wright Vigar

Summer Budget 2015 – Company tax rates and allowances

 In News, Treasury Updates

Corporation tax, which is charged at 20% from April 2015 is set to reduce to 19% in 2017 and 18% in 2020. On top of this, the Annual Investment Allowance, which gives a 100% deduction for qualifying capital expenditure has been set at a permanent rate of £200,000 per annum commencing from 1 January 2016.  Although this is a reduction from the current generous £500,000 that has been in place since April 2014, it is a lot better than £25,000 which was to have been the new limit.

If your company is an employer, you will be pleased to learn that the annual employment allowance which you can set against your NIC bill is rising to £3,000 from April 2016 (currently £2,000).  However, you could also face additional employment costs with the introduction of a National Living Wage for those aged 25 and over of £7.20 per hour.

If you would like more information on this subject, or anything else covered in the Summer Budget 2015, please contact a member of the Tax Team in your local office – or email us at – we would be delighted to help you.

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