The rate of corporation tax has fallen from 21% to 20%, following a series of tax changes which came into effect on 1 April.
The reduction means the UK now has the joint lowest rate of corporation tax in the G20.
The coalition Government has been steadily cutting the rate of corporation tax, which was set at 28% when it came to power five years ago. As a result, all UK companies will now pay a reduced rate of corporation tax on their profits, regardless of their size.
1 April also sees the introduction of the new Diverted Profits Tax – dubbed the ‘Google Tax’ – which will be levied on large multinational companies that operate in the UK but artificially diverts their profits to another country.
Meanwhile, long-haul flights will be cheaper from 1 April following changes to Air Passenger Duty (APD). The two most expensive bands of APD have been abolished, meaning that those travelling more than 4,000 miles will now pay less in duty.
A passenger travelling in band ‘D’ (over 6,000 miles) will see a reduction of £26 in duty, while Band ‘C’ (over 4,000 miles) passengers will pay £14 less.
However, APD for passengers flying between 2,000 and 4,000 miles will rise by £2.
Further tax changes, including those relating to personal allowances and national insurance, will come into effect on 6 April.