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Corporation Tax Table

Corporation Tax is a tax on the taxable profits of limited companies. Taxable profits for Corporation Tax include:

  • Profits from taxable income such as trading profits and investment profits (except dividend income which is taxed differently)
  • Capital gains – known as ‘chargeable gains’ for Corporation Tax purposes

If you would like BridgePoint Accountants in Birmingham to deal with your corporation tax, find out more about our corporation tax services or contact us.

Corporation Tax Table 2013-2014
Full Rate 23%
Small Companies Rate (Profits under £300,000) 20%
Small Companies Limit £300,000
Effective marginal rate (profits between £300 000 and £1,500,000) 23.75%
Upper marginal limit £1,500,000

When is Corporation Tax deadline?

The amount of Corporation Tax that businesses pay is normally calculated nine months and a day after the end of a company’s accounting period end date. The actual date depends on your company’s particular accounting period end date.

How are Corporation Tax rates defined?

There are currently two rates of Corporation Tax, depending on the company or organisation’s taxable profits:

  • Lower rate – known as ‘small profits’ rate
  • The upper rate – known as the ‘full’ rate or ‘main’ rate

What is Marginal Relief?

There is also a sliding scale between the lower and upper rates known as ‘Marginal Relief’. This means if your company or organisation’s profits fall between certain limits, you pay the full rate of Corporation Tax but it is reduced by Marginal Relief.

How Marginal Relief is calculated?

If your company or organisation qualifies for Marginal Relief, then you start by calculating Corporation Tax due at the main rate, as normal. You then work out how much relief you are entitled to, and subtract this relief from the Corporation Tax due, to arrive at the amount you need to pay.

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