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Any Answers Answered: Change of basis period and CT rate


TAXtv’s Giles Mooney and Tim Good are back to tackle two questions from the pages of Any Answers, this time on change of basis period and corporation tax rate.

22nd Mar 2023
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To view the full questions and AccountingWEB reader answers click on the links below.

Change of basis period

Our first question came from anonacc, who said: “I’m a bit confused as to whether there’s a change in basis periods now (in the 2022/23 tax year) rather than the 2023/24 formal MTD transition year? Presumably the 18-month and commercial reason constraints would apply. We would only choose to do this for businesses that would benefit from the overlap relief now – anyone who would effectively bring a tax bill forwards we would leave until the 2023/24 transition year. But saving tax (which is effectively what we’re doing) isn’t a commercial reason. So what are other satisfactory commercial reasons?” 

CT rate for investment companies

Southbankdelboy was looking for clarity on the corporation tax rate for property companies. He asked: “What will the CT rate will be from 1/4/23 for those small companies owned by five or fewer participators holding a handful of properties that are let out and have profits under £50,000? Is it 19%, or 25% with no marginal rate relief?”

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Replies (1)

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By Paul Crowley
23rd Mar 2023 18:34

Much appreciated
The close investment company is something that I had not even thought of, but then I no longer have any.
The change does however cause issues for those that incorporated the letting business in a way that the whole of you tube failed to anticipate.

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