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Corporation Tax Rates

Rates for Financial Years Starting on 1 April.

Rate

2014

2015

2016

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)

-

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%

Main rate of Corporation Tax

​From 1 April 2015 there will be 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%.

​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. The small profits rate of tax on those profits is 19% and the ring fence fraction is 11/400. The main rate 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’).

​Corporation Tax on chargeable gains: Indexation Allowance