What is Corporation tax? Corporation tax rates in UK

Corporation Tax is the tax paid by Limited Companies on their taxable profits.

The rate of tax on all profits is 19%. Please see below the table along with comparative years tax rates.

 

Rates for Corporation Tax years starting 1 April

There are different rates for ring fence companies

Rate 2017 2016 2015 2014
Small profits rate
(companies with profits under £300,000)
20%
Main rate
(companies with profits over £300,000)
21%
Main rate (all profits except ring fence profits) 19% 20% 20%
Marginal Relief lower limit £300,000
Marginal Relief upper limit £1,500,000
Standard fraction 1/400
Special rate for unit trusts and open-ended
investment companies
20% 20% 20% 20%

From 1 April 2015 there is a single Corporation Tax rate of 20% for non-ring fence profits.

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