UK Corporation Tax Rates

This list shows UK the history of corporation tax rates and thresholds from 1971 to 2023.

Pro-Rata Taxable Profits and Tax

The UK fiscal year runs from April 1st to March 31st. Most companies' financial years will differ from this though, creating overlaps. 

In that case HMRC breaks down the company's financial year taxable profit into two separate tax periods.

Each of those is subject to HMRC's appropriate allowances and adjustments, creating two separate taxable profits. The appropriate tax rates are then applied to each, which together arrives at the company's year-end corporation tax charge.

When creating forecasts using Figurewizard, the system automatically calculates and applies that breakdown to forecasts.

 From  April 1st. Starting Profit Threshold Small Rate Profit Threshold Starting Rate of Tax Small Profit Rate of Tax Standard Rate of Tax
1971 - - - 40% 40%
1972 - - - 40% 40%
1973 - 25,000 - 42% 52%
1974 - 25,000 - 42% 52%
1975 - 30,000 - 42% 52%
1976 - 40,000 - 42% 52%
1977 - 50,000 - 42% 52%
1978 - 60,000 - 42% 52%
1979 - 70,000 - 40% 52%
1980 - 80,000 - 40% 52%
1981 - 90.000 - 40% 52%
1982 - 100,000 - 38% 52%
1983 - 100,000 - 30% 50%
1984 - 100,000 - 30% 45%
1985 - 100,000 - 30% 40%
1986 - 100,000 - 29% 35%
1987 - 100,000 - 27% 35%
1988 - 100,000 - 25% 35%
1989 - 150,000 - 25% 35%
1990 - 200,000 - 25% 34%
1991 - 250,000 - 25% 33%
1992 - 250,000 - 25% 33%
1993 - 250,000 - 25% 33%
1994 - 300,000 - 25% 33%
1995 - 300,000 - 25% 33%
1996 - 300,000 - 24% 33%
1997 - 300,000 - 21% 31%
1998 - 300,000 - 21% 31%
1999 - 300,000 - 20% 30%
2000 10,000 300,000 10% 20% 30%
2001 10,000 300,000 10% 20% 30%
2002 10,000 300,000 0% 19% 30%
2003 10,000 300,000 0% 19% 30%
2004 10,000 300,000 0% 19% 30%
2005 10,000 300,000 0% 19% 30%
2006 - 300,000 - 19% 30%
2007 - 300,000 - 20% 30%
2008 - 300,000 - 21% 28%
2009 - 300,000 - 21% 28%
2010 - 300,000 - 21% 28%
2011 - 300,000 - 20% 26%
2012 - 300,000 - 20% 24%
2013 - 300,000 - 20% 23%
2014 - 300,000 - 20% 21%
2015 - N/A - 20% 20%
2016 - N/A - 20% 20%
2017 - N/A - 19% 19%
2018 - N/A - 19% 19%
2019 - N/A - 19% 19%
2020 - N/A - 19% 19%
2021 - N/A - 19% 19%
2022 - N/A -. 19% 19%
2023 - 50,000 - 19% 25%

Forecasting Corporation Tax

Figurewizard forecasts will apply these rates of corporation tax working from your finanical year start date. 

The value of corporation tax payable and payment dates are likely to have a significant effect on your Liquidity and Cash Flow Forecast, which is why an accurate forecast for the tax is essential if your business plan is to be credible.

Taxable Profit

When forecasting using Figurewizard you will see that the tax as a percentage of pre-tax profit will differ from the rate or rates applicable.

A common and important example of this is depreciation, which is not tax-deductible as it is a provision that does not involve cash transfers.

For the purposes of UK corporation tax, depreciation is  substituted for by capital allowances, which in any case usually allow greater tax-relief. Similarly other "provisions" such as for bad debts will also be excluded.

Marginal Relief

Up to 2015 a company with taxable profits that were greater than £300,000 and not more than £1,500,000 were entitled to claim additional tax relief by way of marginal relief. As corporation tax for all company profits regardless of size is now unified, marginal relief has not applied since then.

However a marginal relief element is to be introduced for fiscal year starting in fisal year 2023./ 2024.

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