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Corporation tax

Corporation tax rates and bands are as follows:

Financial year to 31 March 2019 31 March 2018
Taxable profits - main rate 19%  19% 
Loans to participators rate 32.5%   32.5% 
Diverted profits 25%  25% 

Corporation tax payable

For small and medium-sized companies

  • 9 months and 1 day after the end of the accounting period

For large companies

  • Instalments:

The 14th day of the 7th, 10th, 13th and 16th months after the commencement of a 12 month accounting period.

  • Balance:

9 months and 1 day after the end of the accounting period.

Beyond 31 March 2019

The rate of corporation tax reduces to 17% from 1 April 2020.

From 1 April 2019 companies with taxable profits of £20 million or more will be required to pay corporation tax in quarterly instalments in the third, sixth, ninth and twelfth months of their accounting period. The £20 million threshold will be divided by the number of companies in the group.