Paul Crichton

Paul Crichton

Corporate Tax Roadmap


The Government shared its ‘Corporate Tax Roadmap’ during the Autumn Budget 2024. This plan aims to give businesses clarity about the tax system so they can make informed decisions. It outlines which parts of the system will stay the same during this parliament and where changes are likely.

Corporation Tax Rates

The Government has promised not to raise corporation tax rates for small or larger companies during this parliament:

  • Small companies (profits under £50,000 a year) will keep paying 19%.
  • Larger companies (profits over £250,000 a year) will continue paying 25%.
  • Companies with profits between these thresholds will still get marginal relief to ease the jump to the higher rate.

The rules for identifying ‘associated companies’ (companies controlled by the same individuals or groups) haven’t changed, so it’s important to check these carefully to apply the correct tax rate.

Capital Allowances

Good news for both incorporated and unincorporated businesses:

  • Writing down allowances for plant and machinery remain unchanged.
  • The 100% Annual Investment Allowance stays available for qualifying expenditure up to £1 million per year.
  • Companies can still benefit from the unlimited ‘full expensing’ regime for brand-new qualifying plant and machinery. The Government also hopes to expand what qualifies for this scheme.

Research and Development (R&D) Tax Relief

The two methods for claiming tax relief on R&D costs, introduced in April 2024, will remain. This is a tricky area, so if you’re unsure whether your business qualifies or need help with a claim, get in touch and we’ll be happy to help.