CTM01750 - Corporation Tax: rates of tax

 

CTA09/S8, CTA10/S3 (2),(3), CTA10/S279A

Finance Acts determine the rates of CT chargeable for a financial year (CTM01405).

For financial years up to and including 2014, CTA10/S3 and S18 provide for special rates of CT to be charged on UK resident companies with smaller profits which are not close investment-holding companies (CTM60700 onwards).  Broadly this means companies whose profits do not exceed the ‘marginal relief upper limit’ formerly referred to as the ‘upper relevant maximum amount’ (CTM03500 onwards). From the financial year 2015 to 2022, the small profits rate of tax was abolished for companies other than oil and gas companies with ring fence profits but reintroduced from the financial year 2023 onwards by s7 FA2021.

For financial years 2000 to 2005 ICTA88/S13AA provided for companies resident in the UK which are not close investment holding companies or investment trusts with rental income to pay CT at a lower starting rate where their profits did not exceed the ‘first relevant amount’ (CTM03510)

The rates of CT, and relevant limits and fractions, applicable to smaller profits for the financial year 1989 onwards are detailed at CTM03510 .

Where an accounting period straddles 31 March, it will fall partly into two different financial years, in which case:

  • the profits are apportioned on a time basis between the two financial years (CTM01405), and
  • each portion is charged at the rate for the relevant financial year.

The full rates of CT for the financial years 1989 onwards are shown below. For companies with oil and gas activity ring fence profits these rates differ. The main ring fence profits rate is 30% for financial years 2008 to 2020.

Financial Year (commencing 1 April in calendar year)

Full Rate

1989

35%

1990

34%

1991

33%

1992

33%

1993

33%

1994

33%

1995

33%

1996

33%

1997

31%

1998

31%

1999

30%

2000

30%

2001

30%

2002

30%

2003

30%

2004

30%

2005

30%

2006

30%

2007

30%

2008

28%

2009

28%

2010

28%

2011

26%

2012

24%

2013

23%

2014 21%
2015 20%
2016 20%
2017 19%
2018 19%
2019 19%
2020 19%
2021 19%
2022 19%
2023 25%
2024 25%