Corporation Tax Rates
|
2004 |
2005 |
2006 |
2007 |
|---|---|---|---|---|
Starting Rate |
0% |
0% |
N/A |
N/A |
Starting Rate can be claimed by qualifying companies with profits at a rate not exceeding |
£10,000 |
£10,000 |
N/A |
N/A |
Marginal Starting Rate Relief Lower Limit |
£10,000 |
£10,000 |
N/A |
N/A |
Marginal Starting Rate Relief Upper Limit |
£50,000 |
£50,000 |
N/A |
N/A |
Marginal Starting Rate Relief Fraction |
19/400 |
19/400 |
N/A |
N/A |
Small Companies’ Rate* |
19% |
19% |
19% |
20% |
Small Companies’ Rate can be claimed by qualifying companies with profits at a rate not exceeding |
£300,000 |
£300,000 |
£300,000 |
£300,000 |
Marginal Small Companies Relief Lower Limit |
£300,000 |
£300,000 |
£300,000 |
£300,000 |
Marginal Small Companies Relief Upper Limit |
£1,500,000 |
£1,500,000 |
£1,500,000 |
£1,500,000 |
Marginal Small Company Relief Fraction |
11/400 |
11/400 |
11/400 |
1/40 |
Non corporate distributions rate |
19% |
19% |
N/A |
N/A |
Main rate of corporation tax |
30% |
30% |
30% |
30% |
Special rate for unit trusts and open-ended investment companies |
N/A |
N/A |
20% |
20% |
* For companies with ring fence profits the small companies' rate of tax on those profits remains at 19% and the MSCR fraction 11/400 for financial year 2007 starting 1 April 2007. Ring fence profits mean the income and gains from oil extraction activities or oil rights in the UK and UK Continental Shelf.
The main rate of corporation tax applies when profits (including ring fence profits) are at a rate exceeding £1,500,000, or where there is no claim to another rate, or where another rate does not apply.
