UK Corporation Tax Rates and Allowances
| Financial year 2008-09 (£) | Financial year 2009-10 (£) | |||
| Small companies' rate 21% | 50,001 - 300,000 | Small companies' rate 21% | 0 - 300,000 | |
| Marginal relief | 300,001 - 1,500,000 | Marginal relief | 300,001 - 1,500,000 | |
| Main rate 30% | 1,500,001 or more | Main rate 28% | 1,500,001 or more | |
Plans to increase the small companies' rate to 22 per cent for companies with taxable profits up to £300,000 for the 2009/2010 year were shelved in the 2008 Pre-budget.
Marginal relief eases the transition from the starting rate to the small companies' rate for companies with profits up to £50,000. The fraction used in the calculation of this marginal relief will be 19/400. Marginal relief also applies to companies with profits between £300,000 and £1,500,000. The fraction used in the calculation of this marginal relief will be 11/400.
The profits limits may be reduced for a company which is part of a group or has associated companies. The lower rates and marginal reliefs do not apply to close investment holding companies.
There are many accounting software packages in the UK that can help you automate the preparation of corporation tax returns.
