CTM01750 - Corporation Tax: rates of tax

ICTA88/S8(3), ICTA88/S13 & ICTA88/S13AA

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

ICTA88/S13 provides for special rates of CT to be charged on the profits,of small companies resident in the UK which are not close investment-holding companies ( CTM60700 onwards). Small companies are, broadly, companies whose profits do not exceed the upper relevant maximum amount ( CTM03500 onwards).

ICTA88/S13AA provides 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 do not exceed the first relevant amount ( CTM03510)

The rates of CT, and relevant limits and fractions, applicable to small companies 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. Where this happens, you:

• apportion the profits on a time basis between the two years CTM01405, and
• charge each part at the rates for the financial year to which you apportion it.

The full rates of CT for the financial years 1989 onwards are shown below.