Small Business Corporation Tax

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.

Corporation Tax and Marginal Relief From 2023 Deferred Income Explained What is a Monthly Cash Flow Forecast What is Pretax Profit How does a balance sheet balance? Lockdown Recovery: Forecasting Profits, Cash and Finance. How to Apply for Business Interruption Scheme with Figurewizard How to calculate liquidity and short-term liquidity How to calculate markup and margin The Truth about Monarch Airlines Labour's Spending over 10 years from 2000 How to make profits and not run out of cash Credit Checking - How to Read Micro or Short Form Accounts Amortisation of Arrangement Fees for Long Term Loans BHS Profits Performance 2010 - 2014 BHS profits, liquidity and cash flows 2009 - 2014 How to Calculate a Free Cash Flow Forecast Campari: How to apply for a bank business loan What are Current Liabilities What are Current Assets Late Payers and Cash Flow What is Operating Cash Flow? What is Working Capital How to Read a Balance Sheet Business Planning Cash Flow Calculator Short Term Liquidity Business Liquidity Corporation Tax is not Calculated on Net Profit Small Business Corporation Tax Cash Flow Calculator Using Figurewizard - VAT Using Figurewizard - Sales by Month Using Figurewizard - HP or Instalment Plan Budgets Using Figurewizard - How the budgeted cash flow forecast is calculated Using Figurewizard - Fixed Asset Budgets Using Figurewizard - Calculate Purchase of Goods Using Figurewizard - Forecasting Payments to Suppliers Using Figurewizard - How to Forecast Cash Collection Solvency and the Balance Sheet Property in the Balance Sheet Why Equity is a Liability Asset Management and Liquidity Selling Fixed Assets Contracts: Invitation to Treat What is Deferred Income Loss on the Sale of Fixed Assets Calculating Gross Profit Margin Profit and Loss Statement What is Operating Profit What is Net Operating Revenue What is Equity Profit on the Sale of Fixed Assets How Taxable Profit is Calculated What are Operating Overheads Overheads - Provisions How Depreciation is Calculated What is Business Operating Activity What are Fixed Assets Liquidity and Cash Flow Balance Sheet Liabilities and Leases Stock or Inventory Control What is Distressed Stock or Inventory What is Interest Suspense Account Product Safety Laws What is a Bill of Exchange What is Payment at Sight What is a Pro Forma Invoice What is a Bill of Lading What is a packing note What is Demurrage Cash Flow Forecasts and Planning Factoring: Invoice Discounting and Cash Flow How Does VAT Work Figurewizard as a Sales Aid for Factoring and Invoice Discounting