The budget yesterday saw confirmation that the Government will not only press ahead with its planned reduction to corporate tax rates over the life of the parliament but to go slightly farther and reduce them to 17% by the end of the parliament in 2020.
Whilst the tax rate reductions are heavily loaded towards the end of the parliament it does give some comfort to owner-managed businesses who will shortly see an unwelcome depletion of their net income after tax as a result of increased personal tax on dividend income. The fall in corporate tax rates will help to soften the impact of this change for the business owners who extract profits by voting dividends.
There are still plenty of planning considerations to make when considering whether to operate through a Company so please do get in touch discuss your options.
