As part of the Autumn Budget 2024, the Government published its ‘Corporate Tax Roadmap.’ This comprehensive plan aims to provide corporate businesses – and, in certain areas, non-corporate businesses – with clarity and confidence in the tax framework ahead, supporting informed decision-making.

The Roadmap highlights areas where the Government plans to maintain consistency throughout this parliament, alongside areas where changes are anticipated.

Corporation tax rates
The Government has pledged not to raise corporation tax rates for small or larger companies, ensuring they remain competitive. Small companies (with profits below £50,000 annually) will continue to pay 19%, while larger companies (with profits above £250,000 annually) will remain at 25%. Companies with profits between these thresholds will benefit from marginal relief. The ‘associated company’ regime remains unchanged, so accurately identifying group companies and those controlled by the same individual(s) remains essential for applying the correct rate of corporate tax.

Capital allowances
For both companies and unincorporated businesses, the Government has confirmed the continuation of key allowances. Writing down allowances in the main and special rate pools will be maintained, alongside the 100% annual investment allowance for up to £1 million of qualifying expenditure annually. Companies can also continue to benefit from the unlimited ‘full-expensing’ regime for new and qualifying plant and machinery, with hopes of further expansion to the qualifying criteria.

Research and development (R&D)
Since 1 April 2024, two mechanisms for claiming tax relief on revenue R&D expenditure have been in place, and these will remain unchanged. This area of tax relief can be highly complex, so please don’t hesitate to contact us for support or advice on making a claim.