UK raises corporate tax from 19% to 25%

United kingdom Since this fiscal year, which began on April 1, has ended with corporate tax The only company that has a corporate tax rate of 19%. From now on, it will depend on how much you earn. The government is obligated to seek recoveryrsos to fill the gap in public finances – a deficit of 5.4% in 2022 – with collections expected to increase by about 12,000 million pounds in the 2023-24 fiscal year.

Companies offering a Earning up to £50,000 They will continue at the previous rate of 19%, while those who exceed EGP 250,000, about 10% of the total, will now be taxed at 25%. Those who stay in the middle will pay a proportional portion.

It’s still too early to measure impactSince the change was implemented from last April, companies have nine months to set up their accounts. The situation is different in large companies, because their calendar is different and they agree with the management on tax advances.

that it fundamental change In a country that started the century with a 30% corporate tax and gradually reduced it to 19%.

Javier Palacina tax and advisory partner, warns that Spanish companies in the UK should consider these divisions It applies not only to individual companies, but to the group. “Suppose we have two companies – one in Spain and one in the UK – controlled by the same person. In this case, the 25% interest will start from £125,000,” he explains. If there are five companies associated (although there is only one company in the UK) then 25% of £50,000 will apply, which is the result of dividing £250,000 between those five companies.

Hydrocarbon extraction

Still another fundamental change affecting the companies whose activity depends on hydrocarbon extraction Or they have rights to it, both on the land and on the continental shelf, known in the UK as ring-fence companies, for which taxes would rise to 30%.

tax on benefits It is charged to local companies, foreign companies with a branch or office in the UK, clubs and co-operatives.

In addition to this rise, an additional 1.25 percentage point rise in Dividendwhich actually went into effect in April 2022. The measure represents around an additional £1,000m in collection.

Doing business in London

The change may affect the UK’s consideration of doing business. Last week, at a breakfast organized by the Spanish Chamber of Commerce in the UK, Kevin Hollenrek, Secretary of State for Business, Markets and SMEs, insisted that the country remains very attractive to set up a business.

but Think tank US-based tax foundation, which compared states Organization for Economic Co-operation and Developmentindicates that an increase in corporate tax, along with the end of some deductions, will see it drop from 10th to 33rd (from 38th) in the list of countries with A more advantageous tax system For companies, it is in a better position than France and Italy, but behind Germany, Canada, Japan and the United States.

AstraZeneca closes the door

The effects that the dividend tax increase could have — technically temporary — will show in the long run, but some companies have given clear signals they don’t like it. AstraZeneca It will invest $360 million in a new factory in Ireland, where taxes are lower. “You need an environment that generates returns and encourages investmentsaid the chief executive of the pharmaceutical company, Sir Pascal Soriot.

Blasin It is believed that this new tax situation will maintain the interest of companies that want to do business in the UK, but make it less attractive to companies that believe that London A platform to address other countries.