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Corporation Tax

Rates

Effective rate from 1.4.2015 1.4.2014
Profits up to £300,000 20% 20%
Profits £300,001 to £1,500,000 20% 21.25%
Profits above £1,500,000 20% 21%

Notes

  1. Most companies must pay their Corporation Tax nine months and a day after the end of the accounting period.
  2. Large companies or groups generally make four quarterly payments on account of Corporation Tax starting in the seventh month after the start of a 12-month accounting period. The payment is made on the 14th day of the relevant month, with interest running on any balance due until final settlement of the period's liability.
  3. All companies must file Corporation Tax returns online 12 months after the end of the accounting period.

Research and Development

Effective from 1.4.2015 1.4.2014
SME enhanced deductions 130% 125%
Large company enhanced deductions 30% 30%
Large company above the line credit (RDEC) 11% 10%

Notes

  1. The above enhanced deductions are for qualifying revenue expenditure on qualifying R&D projects; various conditions apply to both.
  2. The large company enhanced deduction scheme will cease to be available for expenditure after 31 March 2016.
  3. Where an SME makes a loss it can surrender that loss for payable tax credit worth 14.5% of loss.

Special reliefs

Area Relief
Intangible assets: goodwill, know-how and patent rights Deduction given according to depreciation in the accounts.
Patent income Reduced rate of CT down to 10%.
Shares held for at least 12 months in other trading companies No gains on disposal if at least 10% of company's share capital held.
Creative industries producing: films, high-end or children's TV programmes, video games or theatre productions Enhanced deductions for certain expenditure and losses surrendered for payable tax credits.

Note

The above is a brief summary of selected reliefs available to companies, other conditions apply. Restrictions apply to goodwill acquired from 8.7.2015 and on incorporation from 3.12.2014.