Rates and Allowances -Corporation Tax
Rates limits and fractions for financial years starting 1 April |
2006 |
2007 |
|---|---|---|
| Main rate of corporation tax |
30% |
30% |
| Small companies’ rate (SCR)* |
19% |
20% |
| SCR can be claimed by qualifying companies with profits at an annual rate not exceeding |
£300,000 |
£300,000 |
| Marginal small companies’ relief (MSCR) lower limit |
£300,000 |
£300,000 |
| MSCR upper limit |
£1,500,000 |
£1,500,000 |
| MSCR fraction |
11/400 |
1/40 |
Special rate for unit trusts and open-ended investment companies |
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.
Corporation Tax on chargeable gains: Indexation Allowance
These tables are published monthly under Capital Gains
Rates of Interest for Corporation Tax
These are published on the interest rates page.
