Page 35 - Budget Newsletter - March 2023

55 and above 16%* - 37% 16%* - 37% 16%* - 37% 16%* - 37%

° For diesels not meeting RDE2 emission standards (which became mandatory for
registrations from 1 January 2021), add 4%, maximum 37%.
* Calculated as 1% above 51-54g/km scale percentage for each extra 5g/km above 50g/km,
subject to a maximum of 37%.

Car fuel benefit

For cars with an approved CO2 emission figure, the benefit is based on a flat amount of £25,300 for
2022/23 and £27,800 for 2023/24. To calculate the amount of the benefit, the percentage figure in
the above car benefits table (that is from 0% to 37%) is multiplied by £25,300 in 2022/23 or by
£27,800 in 2023/24. The percentage figures allow for a diesel fuel surcharge. For example, in
2022/23, a petrol car registered before 6 April 2020 emitting 118g/km would give rise to a fuel benefit
of 28% of £25,300 = £7,084; in 2023/24, a petrol car registered before 6 April 2020 emitting 118g/km
would give rise to a fuel benefit of 28% of £27,800 = £7,784.

CORPORATION TAX

Year ending 31 March
2023 2024
Small profits rate (companies with profits under £50,000) N/A 19%
Main rate (companies with profits over £250,000) N/A 25%
Main rate (all profits except ring fence profits) 19% 25%
Marginal relief lower limit N/A £50,000
Marginal relief upper limit N/A £250,000

Standard fraction 3/200
Special rate for unit trusts and open-ended investment companies 20% 20%
(OEICs)*

From 1 April 2023, the 19% rate will apply to the first £50,000 of profits and a marginal rate of 26.5%
will apply to any excess up to £250,000 (£50,000 @ 19% + £200,000 @ 26.5% = £62,500 = £250,000 @
25%). The 19% rate will not apply to close investment-holding companies. So, for close investment-

holding companies and companies with profits of more than £250,000, the rate
of corporation tax will be 25%. (Note that the 19% rate can apply to a property letting company with
profits of up to £50,000.)

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