Corporation Tax

Corporation tax rates and bands are as follows:

Financial Year to 31 March 2011 31 March 2012
Taxable profits | |
Small Profits Rate
21% 20%
Main rate of Corportion Tax
28% 26%
Tax credit on dividends 10% 10%
Fraction 7/400 3/200
Marginal Relief Lower Limit
£300,000
£300,000
Marginal Relief Upper Limit
£1,500,000
£1,500,000

Standard Corporation Tax Payable


For small and medium sized companies
  • Nine months and 1 day after the end of the accounting period

For large companies

  • Instalments
    - The 14th day of the 7th, 10th, 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

April 2012 and Beyond

The main rate of Corporation Tax will fall to 23% by 2014.