Corporation Tax (Table G)
Rate of tax
The 2024 Budget appeared to rule out changes for the life of the Parliament, and this was confirmed in this Budget: the government will set the charge for corporation tax as it does every year, and maintain the main rate at 25% and the small profits rate at 19%, for the financial year beginning 1 April 2028. However, the surcharge which has been levied on the profits of banking businesses will increase from 3% to 6% for 15 months from 1 January 2027, in order to fund the measures introduced to relieve cost of living pressures.
Research and Development (R&D)
From 1 April 2027, companies will no longer need to submit a claim notification form for R&D reliefs. HMRC will introduce a simplified and rationalised Additional Information Form for companies making claims in autumn 2027. Further details will be published before its introduction to give stakeholders time to prepare.