Summary of taxation changes during 2023 and beyond.
Posted on 27th January 2023 at 12:04
The UK government policy changes introduced during 2023 and beyond., here is a brief summary of the taxation changes:
From the 6th April 2023, the threshold rate with be reduced from £150,000 to £125,140 at which the additional rate of income tax of 45% will be applied.
From the 1st April 2023, the Corporation tax rate will increase to 25%, which will apply to Companies with profits of £250,000 and above.
A small profits rate of 19% will affect Companies with profits below £50,000, with a marginal rate for profits of between £50,000 and £250,000.
The Organisation for Economic Co-operation and Development (OECD) global minimum Corporation Tax rate of 15%, will apply to multinational enterprises for accounting periods on or beyond the 31st December 2023.
Capital Gains Tax
From the 6th April 2023, the annual exemption amount will be reduced to £6,000 from £12,300 and cut further to £3,000 from April 2024.
Making Tax Digital (MTD)
Making Tax Digital for Income Tax will take affect on the 6th April 2024 for self-assessment tax payers, whereby it will be mandatory for individuals that were self-employed or receiving property income before the 6th April 2023, affecting those with total gross income in excess of £10,000 in a tax year.
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