Corporation tax

Corporation tax rates and bands are as follows:

Financial year to 31 March 2014 31 March 2013
Taxable profits    
First £300,000 20% 20%
Next £1,200,000 23.75% 25%
On profits over £1,500,000 23% 24%
Tax credit on dividends 10% 10%
Marginal relief fraction 3/400 1/100

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

2014 and beyond

Main rate Small profits rate
Financial year to 31 March 2015 21% 20%
Financial year to 31 March 2016 20% 20%

Did you know?

That the Treasury is expecting to raise £33.6 billion (2012/13 - £34.5 billion) from onshore corporation tax and a further £4.7 billion (2012/13 £4.8 billion) from offshore corporation tax.

For specific advice in completing your corporation tax (form CT600), please get in touch with us.