Large businesses

Corporation Tax rates

The Chancellor confirmed the Corporation Tax rates previously announced: 19% for three years from 1 April 2017, then 17% from 1 April 2020.

Reform of tax reliefs

From April 2017, there will be significant changes to the corporate tax reliefs for interest payments and for losses brought forward. There will be a restriction for large groups, which have net interest expenses of more than £2 million, net interest expense of more than 30% of UK taxable earnings, and a UK net interest to earnings ratio that is greater than that of the worldwide group.

From the same date, there will be a restriction on the amount of profits that can be offset by brought forward losses. Only 50% of current profits will be eligible for relief, but there will be greater flexibility over the types of pro t that can be relieved by losses incurred after April 2017. A standalone company or group with profits up to £5 million will not suffer this restriction.