Corporation tax increase by 6% -

Will it affect your property business?

In the budget it was announced that there will be an increase in the corporation tax by 6 % from 2023. According to the HMRC website this will affect the 30% of the trading companies which are doing well and making a profit of more than £50 000. '70% of the actively trading companies will continue to pay tax at 19% making a profit of less than £50 000.'

If you are running a property business for example renting property through a limited company things that you need to consider the following:

STAMP DUTY TAX RELIEF

The stamp duty tax holiday has been extended so the buy to let landlords might be looking into buy more property to widen their portfolios. There has been an increase in the buy to let landlords in 2019, but after the budget they might be looking if its still worth it to run through a limited company or as a sole trader.

CAPITAL GAINS TAX

There was a prediction that there will be a capital gains tax increase in the budget announced. However, it is a relief that there is no increase in the capital gains tax relief which along with the extension of the stamp duty relief will encourage the property owners to buy and continue to stay in the business.

DIVIDENDS

If you are a company director you will be paying yourself dividend and you will be paying income tax on it. The dividend allowance for 2021/ 2022 is £ 2000. IF you are a basic tax rate payer you will be paying your dividends at the rate of 7.5%, 32.5% at the higher rate.

PROFITS

You are considered to be in a property business if you are renting more than one property. If you are renting property and the total taxable rental income after deducting all the expenses are £50 000 or you are expecting to make the rental income up to £ 50000 in 2023 you should be aware that you will have to pay corporation tax at the rate of 25%. A taper relief will be introduced so you wont have to pay a tax at the main rate of 25 % till your profits reach £ 250 000.

PERSONAL ALLOWANCE

In the budget, Sunak announced that the personal allowance will increase to £12 570 for the basic rate payer and for the additional tax rate payer it will increase to £50 270 from April 2021.

The increase in the personal allowance will reduce the income tax and dividend that is payable to the HMRC.

FINANCE COST

If you are running a property business through a company you will be able to deduct the finance cost as an expense which you will no longer be allowed if you are self- employed. This way if you run the property business through a limited company you can reduce the taxable income and therefore reduce costs to the company.

If you are looking to invest in property and need advice on how to structure your business, please do not hesitate to contact us for an expert advice. We are property accountants and we can provide accounting services at affordable rates.

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ID Verification Form For Companies House

From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House.

Companies House will issue a personal code to PSCs.
Taxaccolega (ACSP) can help collect data and assist.
Please answer the questions and upload documents.

Personal Details

Fornames * Last Name * Date of Birth * Nationality * Place of Birth *

Contact Details

Current Address * Date you moved in at current address? * Previous Address(es) in last 12 months (if Any) Email * Phone *

Role in the Company *

I am a Director I am a Person with Significant Control (PSC)

Identity Documents

ID Document * Address Document *
Are you an Overseas Director and PSC? *

Additional (Overseas)

Overseas Supporting Docs *

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You are declaring that all documents and information provided by you are true and correct, you are consenting to use and store your personal data and consenting for Taxaccolega Chartered Accountants to act as Authorised Corporate Service Provider (ACSP) on your behalf.

I confirm that I have read and agree to the above Terms & Conditions and consent to the processing of my data by Taxaccolega Chartered Accountants for the purposes of identity verification with Companies House.

Terms & Conditions – Identity Verification Process

By submitting, you authorise Taxaccolega to process your data for ID verification with Companies House.

I agree to Terms*

1. Purpose of this Agreement
1.1 These Terms & Conditions apply to the collection and processing of personal data and identity documents required under the Economic Crime and Corporate Transparency Act 2023 and Companies House identity verification rules effective from 18 November 2025.
1.2 By submitting your details through our online form, you authorise Taxaccolega Chartered Accountants (as an Authorised Corporate Service Provider – ACSP) to process your information for the sole purpose of fulfilling the identity verification obligations set by Companies House.

2. Client Responsibilities
2.1 You confirm that all information and documents you provide are true, accurate, complete, and current.
2.2 You accept full responsibility for any false, misleading, or incomplete information supplied, and acknowledge that this may lead to penalties or rejection of your verification by Companies House.
2.3 You must notify us promptly of any change in your details (such as name, address, or role in the company) which may affect the verification process.

3. Our Role & Limitation
3.1 We act solely as an intermediary in submitting your information to Companies House.
3.2 We do not guarantee the acceptance, speed, or outcome of any identity verification by Companies House. The final decision rests solely with Companies House.
3.3 We shall not be liable for any loss, delay, penalty, or consequence arising from:
* (a) inaccurate or incomplete information provided by you,
* (b) delays or failures within Companies House systems,
* (c) rejection or failure of verification by Companies House, or
* (d) events outside our reasonable control.
3.4 Nothing in these Terms excludes liability for death, personal injury, fraud, or any liability which cannot be excluded under law..

4. Data Protection
4.1 We will process your personal data in accordance with the UK GDPR and the Data Protection Act 2018.
4.2 Your data will be used solely for the purpose of identity verification and related compliance requirements.
4.3 We will retain your information only as long as required by law or regulatory obligations.
4.4 We will not disclose your information to third parties other than Companies House or other parties legally entitled to it.

5. Client Consent
By ticking the consent box and submitting your details, you confirm that:
• You have read, understood, and agreed to these Terms & Conditions.
• You consent to Taxaccolega Chartered Accountants acting as your Authorised Corporate Service Provider (ACSP) for identity verification purposes.
• You consent to the processing, storage, and transfer of your personal data and documents in accordance with Section 4 above..

6. Governing Law & Jurisdiction
These Terms & Conditions are governed by and construed in accordance with the laws of England and Wales, and any disputes shall be subject to the exclusive jurisdiction of the courts of England and Wales.

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Corporation tax increase by 6% - Will it affect your property business?