Corporation tax

Corporation tax rates and bands are as follows:

Financial year to 31 March 2015 31 March 2014
Taxable profits    
First £300,000 20% 20%
Next £1,200,000 21.25% 23.75%
On profits over £1,500,000 21% 23%
Tax credit on dividends 10% 10%
Marginal relief fraction 1/400 3/400

Corporation tax payable

For small and medium sized companies

  • Nine months and one day after the end of the accounting period

For large companies

  • Instalments
    • The 14th day of the seventh, tenth, 13th and 16th months after the commencement of a 12 month accounting period
  • Balance
    • Nine months and one day after the end of the accounting period

2015 and beyond

Main rate Small profits rate
Financial year to 31 March 2016 20% 20%

Did you know?

That the Treasury is expecting to raise £38.9 billion (2013/14 - £36.6 billion) from onshore corporation tax and a further £2.6 billion (2013/14 £3.6 billion) from offshore corporation tax.