Business Tax Rates and Bands

Corporation tax

2017/18 to 2021/222015/16 to 2016/172014/152013/142012/132011/122010/11
Rate  -  Profits £Effective %Effective %
Effective %
Effective %
Effective %
Effective %
Effective %
Small  -  0 - 300,00019202020202021
Marginal  -  300,001 - 1,500,000192021.2523.752527.529.75
Main  -  1,500,001 & above19202123242628

Finance Act 2021 provides that from April 2023, the main rate of Corporation Tax will increase to 25% for companies with chargeable profits over £250,000:

  • Companies with chargeable profits of £50,000 or less will still be liable to tax at the current rate of 19%. 
  • Companies with chargeable profits of £50,001 to £250,000 will pay tax at 25% but will have the benefit of marginal relief.
  • The marginal rate fraction will be 3/200ths.
  • The upper and lower limits of the new chargeable profits bands will be apportioned for the number of associated companies in a group.

Capital Allowances

Corporation tax super-deduction on certain plant and machinery                                     130%

First Year Allowance (FYA) on certain plant, machinery and cars of 0g/km                       100%

Corporation tax FYA on long-life assets, integral features of buildings, etc.                      50%

Annual Investment Allowance (AIA) £1,000,000 (£200,000 from 1 January 2022)
Excludes cars

Writing Down Allowance
Long-life assets, integral features of buildings, cars over 50g/km                                       6%
Other plant and machinery                                                                                                        18%
Structures and Buildings Allowance                                                                                          3%                              

Car, Van & Fuel Benefits

 Cars registered pre 6.04.2020Cars registered after 5.04.2020
CO2 emissions g/km% of list price
% of list price

Electric range - 130 or more21
                                   70 - 12954
                                   40 - 6987
                                   30 - 391211
                                   under 301413
For every extra 5+1+1
160 and above37n/a
165 and aboven/a37

For fully diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%. For emissions of 75g/km or more if the CO2 figure does not end in a 5 or 0 round down to the nearest 5 or 0.

Car fuel benefit£24,600
Van benefit£3,500
Van fuel benefit£669

Value Added Tax

From 1.04.2021From 1.04.2020
Standard rate20%20%
Reduced rate5%*5%
Annual Registration Limit£85,000£85,000
Annual Deregistration Limit£83,000£83,000

*12.5% for hospitality and tourism from 1 October 2021 - 31 March 2022

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