UK Corporation Tax Rates and Allowances
|Financial year 2010-11 (£)||Financial year 2011-12 (£)|
|Small Profits Rate||21%||Small Profits Rate||20%|
|Marginal Relief Lower Limit||300,000||Marginal Relief Lower Limit||300,000|
|Marginal Relief Upper Limit||1,500,000||Marginal Relief Upper Limit||1,500,000|
|Main Rate Corporation Tax||28%||Main Rate Corporate Tax||26%|
In the 2012/2013 tax year, the main rate of corporation tax will fall from 26% to 25%.
There is a special rate of tax for unit trusts and open-ended investment companies of 20%.
Companies involved in oil extraction activities (or oil rights) in the UK and UK Continental Shelf are termed Ring Fence Companies. These have a Small Profits Rate of tax at 19% and a main rate of tax of 30%.
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.