From April 2015 a single corporation tax rate of 20% will apply to all companies, regardless of their level of profits. In the meantime, from 1 April 2014 to 31 March 2015 the main rate of corporation tax will remain at its current level of 21% where a company’s profits exceed £1,500,000 (divided by companies under common control). The 20% small profits rate continues to apply to companies with profits up to £300,000 (also divided as above).

The aim of the move is to incentivise overseas investors to come to the UK, and as a result to create further jobs.