Corporation Tax

Companies are liable to pay corporation tax on profits of an accounting period.

The rates apply for a Financial Year. A Financial Year for companies runs from 1 April to 31 March. If the accounting period of a company straddles 31 March, the profits are apportioned on a time basis to each Financial Year.

Corporation Tax Rate
From 1st April 2017 19%

It was announced in the March 2021 budget there would be changes to Corporation Tax rates from 1 April 2023. The rate at which Corporation Tax will apply from this date depends on the level of profit for the year, and the number of associated companies.

Note that the following thresholds are divided by the number of associated companies:

  • A small profits rate (SPR) of 19% is to be introduced for companies with profits of £50,000 or less,
  • Where profits are between £50,000 – £250,000 companies will pay tax at the main rate 25%, reduced by marginal relief. Further guidance will be released in due course by the Government,
  • Companies with profits exceeding £250,000 will pay tax at the main rate 25%.