Corporation Tax

Corporation Tax

Corporation tax rates are set for each Financial year. A Financial Year runs from the 1 April to the following 31 March.

If the accounting period of a company straddles the 31 March, the profits are apportioned on a time basis to each Financial Year.

The profit limits are reduced for accounting periods of less than 12 months and for a company with associated companies. A company is an associated company of another company if one of the two has control of the other, or both are under the control of the same person or persons. A company may be an associated company no matter where it is resident for tax purposes.

Corporation Tax 2016/2017 2015/2016
 Small companies rate up to £300,000  20%  20%
 Upper marginal rate £300,001 to £1,500,000  20%  20%
 Full rate over £1,500.00  20% 20%
 Standard fraction  1/400  3/400
Companies with taxable profits of £1,500,000 or more may be liable to quarterly instalment payments on account of tax liabilities.