Legal Magazine

Corporation Tax Rates UK

Posted on the 20 April 2017 by Raza Laghari @CertaxFitzrovia

Corporation tax is where the rates that are applied to your company’s accounting period for corporation tax. There are different rates for profits of companies involved in oil rights. It is most likely to apply for the small profit rates of 20% and if you are making an annual profit of £300,000 or less per year then this applies to you. With corporation tax, you may be able to get claim tax credits or deductions. On the other hand, if your business has profits of 1.5 million or more then this is known as the main rate which is also 20%. You can apply for a marginal relief which means that your corporation tax bill is reduced by a certain amount which depends on the precise amount of profit that you make. With HMRC help, the calculate the formula for marginal relief as it is extremely complicated to work out.

Corporation tax rate 2017

The corporation tax rate for 2017 is 19% which is known as the main rate, this is all profits except ring fence profit. For the ring-fence companies, with a profit under £300,000 is 19% and for the companies with profits over £300,000, the rate is 30%. You will need corporation tax on any profits if you dispose or sell any business assets. When working out your chargeable gain, you can use Indexation Allowance rates to work out the value of the assets.

Corporation tax rates 2016/17

The corporation tax in 2016 was 20% as the main rate. From the 1st of April 2015, the corporation tax rate has been at 20%.

Corporation tax rates 2017/2018

the corporation tax in 2018 will be 19% the same as 2017.


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