Corporation Tax Rates

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

The Taxable Profit

Following Rishi Sunak's 2021 Spring budget these are currently HMRC rates of UK corporation tax from 1971 to 2023. 

Corporation tax is calculated and applied automatically to all Figurewizard forecasts by our system. simply from your own figures for sales, gross profit margin, overheads, finance and investment.

VAT transactions are also calculated and applied in the same way.

You can view how Figurewizard .calculates your taxable profit and corporation tax payable using capital allowances and these rates step by step here:

Calculating Corporation Tax Pro-Rata

The UK government’s financial year runs from April 1st to March 31st. 

Most companies financial year will differ from this though, in which case annual taxable profits have to be broken down into two tax periods with corporation tax allowances, thresholds and rates calculated on a pro rate basis.

When forecasting using Figurewizard, that breakdown is automatically calcuated and applied to forecasts by the system.

UK Corporation Tax Rates and Thresholds from 1971
 

 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.

That is because the taxable profit is different. For example depreciation is not accepted as a charge, which is substituted for by capital allowances. Similarly "provisions" such as for bad debts are excluded because no explicit transfer or commitment to transfer cash is involved.

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 2023.

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