Calculate corporation tax with small profits rate, main rate, and marginal relief
| Profit Level | Tax Rate | Description |
|---|---|---|
| Up to £50,000 | 19% | Small profits rate |
| £50,001 - £250,000 | 19-25% | Marginal rate with relief |
| Over £250,000 | 25% | Main rate |
| Company Type | Relief Type | Benefit |
|---|---|---|
| SME | Enhanced deduction | 186% of R&D costs |
| SME (loss-making) | Tax credit | Up to 10% of surrenderable loss |
| Large company | RDEC | 20% credit above the line |
Companies are associated if one controls the other, or both are under common control. Control usually means owning more than 50% of shares or voting rights.
Yes, trading losses can be carried forward indefinitely and offset against future profits. From April 2017, there's more flexibility in how losses can be used.
Taxable profit starts with accounting profit but adds back disallowable expenses (like entertainment, fines) and deducts capital allowances instead of depreciation.
Dividends paid don't reduce corporation tax (they're paid from post-tax profits). Dividends received from UK companies are usually exempt from corporation tax.