Company tax rates
| 2011/12 | 2010/11 | 2009/10 | 2008/09 | ||
| Rate | Profits £ | Effective % | Effective % | Effective % | Effective % |
| Small | 0 - 300,000 | 20 | 21 | 21 | 21 |
| Marginal | 300,001 - 1,500,000 | TBA | 29.75 | 29.75 | 29.75 |
| Main | 1,500,001 and above | 27 | 28 | 28 | 28 |
The company tax year starts on 1 April.
Companies: the marginal relief calculation
Marginal relief is given by:
(Upper limit – profits) x basic profits x fraction
profits
- The upper limits are currently £300,000 or £1,500,000.
- Basic profits are the companies profits, and,
- Profits are basic profits + franked investment income, which is grossed up by 100/90.
- Group dividends are from 51% groups (51% + subsidiaries or fellow 51% + subsidiaries of a parent).
- The fraction depends upon the financial year applies, and when a company’s accounting period spans two financial years it may be necessary to time apportion the profits. This does not affect associates unless there is a change in the relevant bands.
Upper and lower limits are reduced where:
- There is a short period of account, and, or,
- There are associated companies, by dividing the limits by one plus the number of associated companies, which the company has at any time during its accounting period.
