CORPORATION TAX RATES

Corporation tax is charged on the profits of companies and unincorporated bodies that are not partnerships, for example members' clubs. The term profits includes all sources of income and capital gains.

A company pays Corporation Tax on the profits it makes from doing business (‘trading profits’), its investments, and selling assets for more than they cost (‘chargeable gains’ – company assets include land and property, equipment and machinery, and company shares).

The rate of corporation tax is fixed by reference to financial years. The financial year commences on 1 April and thus the financial year 2020 is the year commencing on 1 April 2020 etc.

The Corporation Tax rate for company profits is 19 per cent. This is now the standardised rate for all businesses. In 2016-17, the Corporation Tax rate was 20 per cent. Prior to April 2016, the rate depended on how much profit your company made.

The deadline to pay your Corporation Tax bill is nine months and one day after the end of your accounting period for your previous financial year, so if your accounting period ends on 31 March, your Corporation Tax deadline is 1 January.

Rates & Allowances Pages ► Income Tax Rates & Allowances ■ Capitlal Gains Tax ■ Pensions ■

■ Inheritance Tax ■ National Insurance ■ Statutory Pay ■ Child Benefit ■ Vehicles ■ VAT ■ ISAs ■

  ■ Corporation Tax ■ Capital Allowances ■ Stamp Duty & SDLT ■ Investing in a small business ■

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