Business Tax Rates and Bands

Corporation tax

	2017/18 to 2021/22	2015/16 to 2016/17	2014/15	2013/14	2012/13	2011/12	2010/11
Rate  -  Profits £	Effective %	Effective %	Effective %	Effective %	Effective %	Effective %	Effective %
Small  -  0 - 300,000	19	20	20	20	20	20	21
Marginal  -  300,001 - 1,500,000	19	20	21.25	23.75	25	27.5	29.75
Main  -  1,500,001 & above	19	20	21	23	24	26	28
Fraction	n/a	n/a	1/400th	3/400ths	1/100th	3/200ths	7/400ths

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

2021/22

	Cars registered pre 6.04.2020	Cars registered after 5.04.2020
CO2 emissions g/km	% of list price taxed	% of list price taxed
0	1	1
1-50
Electric range - 130 or more	2	1
70 - 129	5	4
40 - 69	8	7
30 - 39	12	11
under 30	14	13
51-54	15	14
For every extra 5	+1	+1
160 and above	37	n/a
165 and above	n/a	37

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.

	2021/22
Car fuel benefit	£24,600
Van benefit	£3,500
Van fuel benefit	£669

Value Added Tax

	From 1.04.2021	From 1.04.2020
Standard rate	20%	20%
Reduced rate	5%*	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