RATEs
Corporation Tax
Rates for 2023 Starting 1st April
There are different rates for ring fence companies (explained below).
Small profits rate (companies with profits under £50,000) for 2023: 19%
Main rate (companies with profits over £250,000) for 2023: 25%
Marginal relief (lower limit) for 2023: £50,000
Marginal relief (upper limite) for 2023: £250,000
Standard fraction for 2023: 3/200
Special rate for unit trusts and open-ended, investment companies for 2023: 20%
For previous years, and for more information, view the Gov.uk page.
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.
For periods up to 31 March 2023, ring fence companies can claim Marginal Relief on profits between £300,000 and £1.5 million. From 1 April 2023, Marginal Relief is available for companies with profits between £50,000 and £250,000.
Corporation Tax on Chargeable Gains
If you sell or dispose of a business asset, you’ll need to pay Corporation Tax on any profits (or ‘chargeable gains’).
When working out your chargeable gain, you can use Indexation Allowance rates to reflect the increase in value of the asset between the time it was acquired and 31 December 2017.
From 1 January 2018, Indexation Allowance is frozen.
If an asset is acquired before 1 January 2018, but disposed of on of after that date, the Indexation Allowance will be calculated using either the:
Retail Prices Index
factor for December 2017
This is regardless of the date when the asset is disposed of.
For more information, visit the Gov.uk page.