CORPORATION TAX

Financial Yr 2024

1.4.2024 - 31.3.2025

Financial Yr 2023

1.4.2023 - 31.3.2023

Notes

Corporation Tax rate on profits

19%/25%

19%/25%

Note below

Research & Development tax relief - SMEs enhanced

186%

186%

Total deduction

R&D Intensive SME payable credit

14.5%

14.5%

Claim if loss making

R&D merged scheme

20%

n/a

Corporation Tax rate on loans to participators

33.75%

33.75%

Note below

From 1.4.2023, CTax will be 25% for companies with a profit of over £250K and 19% for profits below £50K. For profits between £50K-£250K the rate will be 25% reduced by a marginal relief (or 26.5% on portion). Corporation tax is payable on loans made by close companies to participators/directors who hold more than 5% of the company and not repaid within 9 months of the accounting date at 33.75% of the loan outstanding. It is repaid when the loan is repaid.

STATE PENSION per week - Reached state pension age before 6.4.2016

2024/25

2023/24

Notes

Cat A or B - State pension  

£169.50

£156.20

Relates to single person or married with their own NI contributions.

Cat B pension - spouse/civil partner insurance

£101.55

£93.60

Married person using spouses NI contributions record.

Cat C or D - non-contributory

£101.55

£93.60

This applies to over 80’s

Age Addition payments

£0.25

£0.25

Additional payment if you are over 80 for Categories A and B

Pension credit - minimum guarantee - single

£218.15

£201.05

Pension credit tops up the weekly income to a guaranteed minimum.

Pension credit - minimum guarantee - married

£332.95

£306.85

OLD RULES - applies to those who reached state retirement age before 6.4.2016 (men born before 6.4.1951 and women born before 6.4.1953) and have 30 years NI record.More details available in Age UK-Factsheet 19.

STATE PENSION per week - Reached state pension age after 5.4.2016

2024/25

2023/24

Notes

New State Pension - Basic maximum

£221.20

£203.85

For those who reach state pension age after 5.4.2016

NEW RULES - applies to those who reach state retirement age after 5.4.2016 (men born after 5.4.1951 and women born after 5.4.1953) and have 35 years NI record get the maximum above. Those with 10-34 years contributions receive a proportion and those with less than 10 years NIC contributions will get nothing, subject to certain exceptions. Those who have contributions before 6.4.2016 - transitional calculations will apply. More details available in Age UK- Factsheet 19.

TRADING LOSSES

Companies with trading losses incurred between 1 April 2020 and 31 March 2022, and unincorporated businesses with trading losses incurred in the tax years 2020/21 and 2021/22, will be able to carry back the losses against profits of the 3 previous years (rather than the current 1 year). The amount of loss used is restricted to £2million. For example, a trading loss for a business incurred in 2020/21 can be carried back against profits in 2019/20, 2018/19 and 2017/18 and a refund claimed for any losses used against profits of those periods.

RESTRICTION OF FINANCE COSTS AGAINST RENTAL INCOME FOR INDIVIDUAL LANDLORDS

percentage of Interest allowed

balance of interest allowed at basic rate tax relief only

Notes

From tax year 2020/21

0%

0%

From tax year 2020.21 relief for finance costs will only be available at the basic rate (currently 20%).

Higher rate taxpayers will pay more tax and basic rate taxpayers will not be affected other than to increase taxable profits, potentially moving them into the higher rate tax bracket. The above restriction does not apply to commercial property or furnished holiday lets or to residential properties held under limited company ownership.