Corporation tax and loans to participators

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The corporation tax rate for all companies is set to fall from 20% currently, to 19% from 1 April 2017.

The rate was set to fall to 18% from 1 April 2020.  In the Summer 2016 Budget it was announced the rate will instead reduce to 17% from 1 April 2020.

The tax charge on loans to participators (shareholders) is increasing from 25% to 32.5% from 1 April 2016, matching the 7.5% increase in dividend tax.

David Wilsdon