Corporation Tax

 

Rates for Corporation Tax years starting 1 April

Rate 2016 2015
Small profits rate
(companies with profits under £300,000)
- -
Main rate
(companies with profits over £300,000)
- -
Main rate
(all profits except ring fence profits)
20% 20%
Marginal Relief
lower limit
- -
Marginal Relief
upper limit
- -
Standard fraction - -
Special rate for
unit trusts and open-ended investment companies
20% 20%

 

Ring fence companies can claim Marginal Relief on profits between £300,000 and £1.5 million

Rate 2016 2015
Small profits rate
(companies with profits under £300,000)
19% 19%
Main rate
(companies with profits over £300,000)
30% 30%
Ring fence fraction 11/400 11/400
  • From 1 April 2015 there is a single Corporation Tax rate of 20% for non-ring fence profits.
  • Use the Marginal Relief calculator to work out how much Marginal Relief you can claim on your Corporation Tax for profits before 1 April 2015.
  • At Summer Budget 2015, the government announced legislation setting the Corporation Tax main rate (for all profits except ring fence profits) at 19% for the years starting the 1 April 2017, 2018 and 2019 and at 18% for the year starting 1 April 2020. At Budget 2016, the government announced a further reduction to the Corporation Tax main rate (for all profits except ring fence profits) for the year starting 1 April 2020, setting the rate at 17%.

 

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