CORPORATION TAX RATES

Corporation Tax Rates

The standard corporation tax rate is 20%.

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%.

Ring fence companies

There are different Corporation Tax rates for companies that make profits from oil extraction or oil rights in the UK or UK continental shelf. These are known as ‘ring fence’ companies.

Ring fence companies can claim Marginal Relief on profits between £300,000 and £1.5 million.

Rate 2016 2015 2014 2013
Small profits rate 
(companies with profits under £300,000)
19% 19% 19% 19%
Main rate
(companies with profits over £300,000)
30% 30% 30% 30%
Ring fence fraction 11/400 11/400 11/400 11/400



Please feel free to contact us if you require any further information.

LEGAL NOTICE AND WARNING:
The information displayed in this section should not be used as a definitive guide, since individual circumstances may vary. Specific advice should be obtained where necessary. We accept no responsibility of use of above information on your own.