Corporation Tax Rates

Corporation Tax Rates

Limits and Thresholds

Weekly

Monthly

Annual

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)

19%

19%

19%

Marginal Relief lower limit

–

–

–

Marginal Relief upper limit

–

–

–

Standard fraction

–

–

–

Special rate for unit trusts and open-ended investment companies

20%

20%

20%

Learn More

For more information, visit the HMRC website: http://www.hmrc.gov.uk/rates/corp.htm

​Reproduced under the Open Government License – http://www.hmrc.gov.uk/copyright/

Ring Fence Companies

*There are different Corporation Tax rates for companies that make profits from oil extraction or oil rights in the UK or UK continental shelf. These are known as ‘ring fence’ companies. Ring fence companies can claim Marginal Relief on profits between £300,000 and £1.5 million. The small profits rate of tax on those profits is 19% and the ring fence fraction is 11/400. The main rate (companies with profits over £300,000) is 30%.

Corporation Tax on Chargeable Gains

If you sell or dispose of a business asset, you’ll need to pay Corporation Tax on any profits (or ‘chargeable gains’).

When working out your chargeable gain, you can use Indexation Allowance Rates to reflect the increase in value of the asset between the time it was acquired and 31 December 2017. From 1 January 2018 Indexation Allowance is frozen. Where assets acquired before 1 January 2018 are disposed of on or after that date, the Indexation Allowance will be calculated using the Retail Prices Index or factor for December 2017, irrespective of the date of disposal of the asset.

Value Added Tax

Standard rate: 20%

Reduced rate, e.g. on domestic fuel: 5%

Registration level

£85,000

Deregistration level

£83,000

Flat rate scheme turnover limit

£150,000

Cash and annual accounting schemes turnover limit

£1,350,000

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