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What is Corporation tax? Corporation tax rates in UK

Corporation Tax is basically the payment done by Limited Companies on their taxable profits.

19% is decided for the rate of tax on all profits. Please find below the table along with comparative year’s tax rates.

Rates for Corporation Tax Years Starting 1 April

There are different rates for ring fence companies

Rate 2017 2016 2015 2014

Small profits rate
(companies with profits under £300,000)

 - - - 20%

Main rate
(companies with profits over £300,000)

-    -      -   21%

Main rate (all profits except ring fence profits)

  19  20   20    -

Marginal relief lower limit

  -  -   -  

£300,000

Marginal Relief upper limit

   

  –

   –

 

  –

 

£1,500,000

Standard fraction

– 

 

 

  

1/400

Special rate for unit trusts and open-ended
investment companies

  20%   20%   20%    20%

For non-ring fence profits, there is a single Corporation Tax rate of 20% from 1st April 2015.