What is Corporation Tax?

7 February 2024

Corporation tax is a tax Limited Companies pay on their profits. Taxable profits for CT are made up from trading, selling assets and investments.

Annual accounts are prepared, CT is calculated on the profits, the accounts are filed with Companies House and Corporation Tax is paid to HMRC, 9 months after the financial year end.

 

New Rates of Corporation Tax

As of April 2023 CT is calculated on a sliding scaled based on the companies’ profits

Small Profit Rate (profit under £50k) is taxed 19%

Main Profit Rate (profit over £250k) is taxed 25%

Profit between £50-£250k is taxed on a scale between 19%-25%.

 

Your accountant will calculate the CT and file a CT600 form.