The main rate of corporation tax is currently 20% and this rate will continue for the Financial Year beginning on 1 April 2016. In the following years the rate of tax will fall as follows:
• 19% for the Financial Years beginning on 1 April 2017, 1 April 2018 and 1 April 2019.
• 17% for the Financial Year beginning on 1 April 2020.
The 17% rate from April 2020 is a reduction of 1% from the rate previously announced by the Chancellor in his Summer Budget in 2015.
CBI Director-General, Carolyn Fairbairn, said, “The reduction in the headline Corporation Tax rate sends out a strong signal that the UK is open for global business investment, and reforms to Interest Deductibility are rightly in line with the international consensus.”