Removal of Tax Obstacle to Multiple Companies

Today is a big date in my calendar.  It is one I have been looking forward to for a number of years now.  1st April 2015 is when the main rate of corporation tax finds the same level as the small companies’ rate at 20%.

The small companies’ rate is on profits under £1.5m and there was a horrible marginal rate of corporation tax to pay when your profits exceeded £300,000.

These thresholds were divided by the number of companies you have.

So, if you wanted a holding company and a subsidiary you paid marginal rate at £150,000+.

If you had 3 different companies and formed a group to use group taxation, you were into the marginal rate when profits went over £75,000.

Marginal rate is now no more.  Hurrah!

You can now have as many companies as you want.  Yippee!