Budget 2016: Further cut in Corporation Tax

At the Summer 2015 Budget the government announced reductions to the CT rate from 20% to 19% with effect for the financial year beginning 1 April 2017 with a further reduction to 18% for the financial year beginning 1 April 2020.

Legislation will be introduced to reduce the rate of CT, for all non-ring fenced profits, to 17% instead of 18% for the financial year beginning 1 April 2020.

The measure will mean that the UK will have the lowest tax rate in the G20. The reduction will benefit over a million companies large and small when it eventually becomes effective.