The rate of Corporation Tax you pay depends on how much profit your company makes.
There are different rates for ring fence companies
| Rate | 2016 | 2015 | 2014 | 2013 |
| Small profits rate (companies with profits under £300,000) |
– | – | 20% | 20% |
| Main rate (companies with profits over £300,000) |
– | – | 21% | 23% |
| Main rate (all profits except ring fence profits) | 20% | 20% | – | – |
| Marginal Relief lower limit | – | – | £300,000 | £300,000 |
| Marginal Relief upper limit | – | – | £1,500,000 | £1,500,000 |
| Standard fraction | – | – | 1/400 | 3/400 |
| 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.
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%.
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