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
| 2022 | 2023 | 2024 | 2025 |
| 19% | 25% | 25% | 25% |
Small Profits Rate*
| 2022 | 2023 | 2024 | 2025 |
| N/A | 19% | 19% | 19% |
*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:
| 2022 | 2023 | 2024 | 2025 |
| N/A | N/A | N/A | N/A |
Marginal Relief Lower Limit
| 2022 | 2023 | 2024 | 2025 |
| N/A | 50000 | 50000 | 50000 |
Marginal Relief Upper Limit
| 2022 | 2023 | 2024 | 2025 |
| N/A | 250000 | 250000 | 250000 |
Standard Fraction
| 2022 | 2023 | 2024 | 2025 |
| N/A | 3/200 | 3/200 | 3/200 |
Special rate for unit trusts and open-ended investment companies
| 2022 | 2023 | 2024 | 2025 |
| 20% | 25% | 25% | 25% |
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 profits between £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.
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.
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.
Please contact us for further information.
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