## These are the rates of UK corporation tax for small company profits for tax years 2013 and 2014 including rates of marginal relief.

### Corporation tax and marginal relief 2023

If you are looking for corporation tax rates and marginal relief from 2023 click here: :

### Corporation Tax Rates 2013 - 2015

Up to 2016 there were two rates of corporation tax; one for small and another for main profits. The rates were as follows:

 Taxable Profit Threshold and Rates 2013 / 2014 2014 / 2015 Small Profits - To a maximum of £1,500,000 £1,500,000 Small Profits Rate 20% 23% Main Profits Rate 20% 21%

### Marginal Relief

Small company profits that were greater than £300,000 up to the maximum of £1,500,000 qualify for additional tax relief. This was marginal relief which was calculated by deducting the taxable profit from an upper llimit of £1,500,000 and then applying the marginal relief fraction as follows:

 Thresholds 2013 / 2014 2014 / 2015 Minimum - Profits greater than £300,000 £300,000 Maximum - At or below £1,500,000 £1,500,000 Fraction - Divide by 400 400 Fraction - Multiply by 3 1

### How to Calculate Marginal Relief

A business with a taxable profit of £400,000 in 2013/2014 would first have deducted that from the upper marginal relief threshold of £1,500,000 (i.e. £1,100,000).

That would then have been divided by 400 (i.e. £2,750) and multiplied by 3 (i.e. £8,250) which is then set off against the taxable profit.

There are two links below. The first will take you to an historical list of corporation tax rate, the second to a working example showing exactly how Figurewizard calculates forecasts for taxable profits and corporation tax before applying them to forecast profits and cash flows.

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