It has been widely publicised in the press that the rate of Corporation Tax is falling to 17% in 2020 - fantastic news for businesses.
But have you considered that this also means you’ll get a lower rate of tax relief for any commercial property purchases or improvement projects that you undertake after 1 April 2020?
For Example
£100,000 spent on certain qualifying expenditure in March 2020 could be worth £19,000 in tax savings, but if this transaction were to fall only a matter of days later in April 2020 then the tax saving might only be worth £17,000.
If you were able to accelerate this spend and complete any property transactions before the rate change, then we would recommend that you consider doing so.
To find out more about this and how the change in rate might affect any potential tax relief available to you, please give a member of the tax team a call on 0114 2671617 or 01246 559955 or complete our form to arrange your free consultation.
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David Robinson
As a Tax Partner, I advise clients on all aspects of UK tax, ranging from business taxes, transactions and private client matters, helping to achieve the objectives and aspirations of businesses and their owners.
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