Corporation Tax in the UK
Corporation tax, or CT, is paid by limited companies and other organisations, including clubs, societies and charities, on their taxable profits. The rate of CT payable depends on the level of the company or organisation’s taxable profits.
Between the small profits rate and the full rate is a sliding scale known as marginal rate relief. If a company’s taxable profits are more than the small profits rate but less than the full rate, the effective rate of CT payable rises gradually from the lower rate to the full rate, depending on the amount of taxable profit.
|Rate||2009–10 and 2010–11|
|Small profits rate||21%|
The small profits rate is payable by companies with taxable profits up to £300,000. The full rate is payable on taxable profits above £1.5 million.