Rates of corporation tax
Corporation tax is paid by limited companies on their profits.
There are two rates of corporation tax.
- the small companies' rate 19 per cent
- the main rate 30 per cent
Corporation tax rate
Level of profit on which rate is charged
2006/07 rates and allowances
Small companies' rate
On profits of ￡0-￡300,000
19 per cent
Marginal small companies' relief
On profits of ￡300,001 - ￡1,500,000
30 per cent less relief. The relief is ￡1,500,000 minus the amount of profits multiplied by 11/400
On profits of ￡1 500 001 and above
30 per cent
Note: if your company is an associated company, ie it controls or is controlled by another company, then the profit levels shown in the table above may be reduced.
The 0 per cent starting rate was abolished from 6 April 2006 and was replaced with the single small companies' rate of 19 per cent.