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. These would be as follows;

  • A small profits rate (SPR) is also to be introduced for companies with profits of £50,000 or less
  • Companies with profits between £50,000 – £250,000 will pay tax at the main rate reduced by a marginal relief. Further guidance will be released in due course by the Government to determine exactly how this will work.
  • Companies with profits exceeding £250,000 – 25%
  • Note – the thresholds will be divided by the number of associated companies