Some good news for companies!

There was some welcome news from Philip Hammond’s Autumn Statement for small and medium sized companies regarding the tax relief available if a company makes a loss.

 

Historically, corporation tax loss reliefs have mirrored the principles upon which income tax loss reliefs have been based – if a loss is incurred in a trading business, those losses can be offset against other types of income arising in the same year as the loss, and may be carried back against income of the previous year. But if a loss is not relieved at that point, the use of a carried forward loss is generally restricted to being used against future profits from the same trade only.

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Top 10 Highlights of the Autumn Statement relating to business

  1. Committing to raise the Personal Allowance to £12,500 and the Higher Rate Threshold to £50,000 by 2020-21

The Personal Allowance is the amount of income you can earn before you start paying income tax. It is currently £11,000 this year, and will rise to £11,500 in 2017-18. The point at which you pay the higher rate of income tax will increase from £43,000 this year, to £45,000 in 2017-18.

Once the Personal Allowance reaches £12,500, it will increase in line with inflation.

Continue reading Top 10 Highlights of the Autumn Statement relating to business