Corporation Tax Rates

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Corporation Tax Rates

If you are looking at Corporation Tax Rates or planning your finances, please feel free to contact us. We can discuss your specific circumstances to help you plan tax efficiently.

Rates for financial years starting on 1 April

Main rate of Corporation Tax

Year2020202120222023
Rate19%19%19%19%

Small Profits Rate*

Year2020202120222023
RateN/AN/AN/AN/A

*As of 1st April 2015, all companies (other than Ring Fence Companies) pay Corporation Tax at the main rate of Corporation tax.

Small Profits Rate can be claimed by qualifying companies with profits not exceeding

Year2020202120222023
RateN/AN/AN/AN/A

Marginal Relief Lower Limit

Year2020202120222023
RateN/AN/AN/AN/A

Marginal Relief Upper Limit

Year2020202120222023
RateN/AN/AN/AN/A

Standard Fraction

Year2020202120222023
RateN/AN/AN/AN/A

Speacial rate for unit trusts and open-ended Investment companies

Year2020202120222023
Rate20%20%20%20%

Main rate of Corporation Tax

For 2023 onwards, the main rate of Corporation tax is due to be 25% with a small companies rate of 19% applying for profit sbetween £50,000 and £250,000.

Ring Fence Companies

*For companies with Ring Fence profits (income and gains from oil extraction activities or oil rights in the UK and UK Continental Shelf) these rates differ. The small profits rate of tax on those profits is 19 per cent and the Ring Fence fraction is 11 /400 for financial years starting on or after 1 April 2011. The main rate is 30 per cent for financial years starting on or after 1 April 2011.

Prior to 2022 main rate of Corporation Tax applies when profits (including ring fence profits) exceed £1,500,000 or where there is no claim to another rate, or where another rate does not apply. As of 1st April 2015 all companies (other than Ring Fence Companies) pay Corporation Tax on all profits at the main rate of Corporation Tax. 

Corporation Tax on Chargeable Gains

Indexation Allowance allows for the effects of inflation when calculating the chargeable gains of companies or organisations liable to Corporation Tax.

When a company makes a capital gain on or after 1 January 2018, the indexation allowance that is applied in order to determine the amount of the chargeable gain will be calculated up to December 2017 rather than the month in which the disposal of the asset occurs.

Disclaimer : This website and its contents have been produced as a helpful reference point. The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the authors make reasonable efforts to ensure the content of this website is accurate and up-to-date, the authors make no representations, warranties or guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information without this website.

Our service to you

If you are a self employed, business owner/director of company looking to get your accountancy and taxation matters sorted, look no further. We, at Naail & Co, are pro-active and easily accessible accountants and tax advisors, who will not only ensure that all your filing obligations are up to date with Companies House and HMRC, but also you do not pay a penny more in taxes than you have to. We work on a fixed fee basis and provide same day response to all your phone and email enquiries. We will also allocate a designated accounts manager who would have better understanding of your and business financial and taxation affairs. Book a free consultation call using the link below.

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