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Tax Update

Corporation Tax Rates Confirmed: Stability for Businesses

Government confirms corporation tax rates remain at 25% for large companies, providing planning certainty for businesses. Key updates on business rates relief and other tax measures.

Corporation Tax Rates Remain Stable

The main corporation tax rate remains at 25% for companies with profits over £250,000, providing certainty for business planning. The small profits rate continues at 19% for profits up to £50,000, with marginal relief applying between £50,000 and £250,000.

Business Rates Relief Extended

The 75% business rates relief for retail, hospitality and leisure properties has been extended for another year until March 2026, capped at £110,000 per business to support economic recovery.

Capital Gains Tax Changes

Capital gains tax rates for higher rate taxpayers increase from 20% to 24% for most assets, and from 28% to 32% for residential property. Annual exemption remains at £3,000 for 2024/25.

What This Means for Your Business

Rate stability provides certainty for your tax planning strategy. Contact TengFei International to review your business structure and identify opportunities for tax efficiency under the current rates.

Quick Summary

Corporation Tax

Rates unchanged at 19%/25%

AIA Extended

£1M until March 2026

R&D Relief

New UK requirements

Need Advice?

Our experts can help you optimize your tax position under the current stable rates.

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