Following last month’s budget it is, for most people, a case of no change despite several rumours circulating in the previous weeks. The main contents with regard to Corporation Tax were as follows:
Corporation Tax Rate
The rate of Corporation Tax will remain at 19% for both 2018/19 and 2019/20. It is set to reduce to 17% on 1st April 2020.
Indexation Allowance
Unlike individuals, companies applied an indexation allowance to the cost of an asset in calculating the amount of the chargeable gain. For disposals made on or after 1st January 2018, however, the indexation allowance applied will be for the period from date of acquisition to 31st December 2017. Increases in the index after 31st December 2017 will be ignored in calculating the chargeable gain.
Other Content
There are a number of other measures including:
- The method of calculating business rate increases will change from RPI to CPI from 1st April 2018.
- Employer provided electricity for an electric car will be an exempt benefit from April 2018
- Receipts will no longer be required for meals when subsistence is claimed by an employee using benchmark scale rates
- The 100% first year allowance on zero-emission goods vehicles and gas refuelling equipment is extended to March 2021.