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Corporation tax

Corporation tax rates and bands are as follows:

Financial year to 31 March 2012 31 March 2011
Taxable profits    
First £300,000 20% 21%
Next £1,200,000 27.5% 29.75%
On profits over £1,500,000 26% 28%
Tax credit on dividends 10% 10%
Marginal relief fraction 3/200 7/400

Corporation tax payable

For small and medium sized companies

  • Nine months and one day after the end of the accounting period

For large companies

  • Instalments
    • The 14th day of the seventh, tenth, 13th and 16th months after the commencement of a 12 month accounting period
  • Balance
    • Nine months and one day after the end of the accounting period

2012 and beyond

Main rate Small profits rate
Financial year to 31 March 2013 25% N/K
Financial year to 31 March 2014 24% N/K
Financial year to 31 March 2015 23% N/K

N/K = Not known

Did you know?

That the Government expect to receive £49bn from corporation tax in 2011/12 (2010/11 - £42.7bn)