The rate of Corporation Tax you pay depends on how much profit your company makes.
There are different rates for ring fence companies
|Small profits rate
(companies with profits under £300,000)
(companies with profits over £300,000)
|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|
|Special rate for unit trusts and open-ended
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%.