| Corporation tax |
2026/27 |
2025/26 |
All profits and gains (excluding determination agreements and diverted profits)
Small profits rate (companies with profits under £50,000)
Main rate of corporation tax (companies with profits over £250,000) |
19%
25% |
19%
25% |
| Limits for marginal relief |
£50,000 - £250,000 |
£50,000 - £250,000 |
| Standard fraction for marginal relief |
3/200 |
3/200 |
| S.455 tax on loans made by close companies to participators |
33.75% |
33.75% |
Quarterly instalments threshold for large companies (threshold reduced if company has any associates, even if not in the same group) = £1,500,000
| Capital allowances |
2026/27 |
2025/26 |
| Main writing-down allowance (reducing balance) |
14% |
18% |
| Special rate writing-down allowance (reducing balance) |
6% |
6% |
| Structures and buildings allowance (SBA) |
3% |
3% |
| Full expensing (main rate plant and machinery)* |
100% |
100% |
| Full expensing (special rate plant and machinery)* |
50% |
50% |
| * Full expensing allows the deduction of 100% / 50% of the cost of certain plant and machinery from profits before tax. This relief is available on an ongoing basis (subject to conditions). |
| Motor cars if CO2 > 1/km but does not exceed 50g/km |
6% |
18% |
| Motor cars if CO2 > 50g/km |
18% |
18% |
| First-year allowances (FYA) – New and unused motor cars if CO2 emissions are 0 g/km or car is electric |
100% |
100% |
| Capital allowances |
2026/27 |
2025/26 |
| Small pool write-off where written-down value (WDV) is £1,000 or less |
100% |
100% |
| FYA for electric charge points |
100% |
100% |
| Annual investment allowance (AIA) |
£1,000,000 |
£1,000,000 |
| AIA rate |
100% |
100% |
| VAT |
2026/27 |
2025/26 |
| Standard rate |
20% |
20% |
| Reduced rate |
5% |
5% |
| Zero rate |
0% |
0% |
| VAT |
2026/27 |
2025/26 |
| Normal scheme registration threshold |
£90,000 |
£90,000 |
| Deregistration threshold |
£88,000 |
£88,000 |
| Cash and annual accounting scheme – maximum to join |
£1,350,000 |
£1,350,000 |
| Cash and annual accounting scheme – exit threshold |
£1,600,000 |
£1,600,000 |
| Flat-rate scheme – maximum allowed to join |
£150,000 |
£150,000 |
| Flat-rate scheme exit threshold |
£230,000 |
£230,000 |
| Annual tax on enveloped dwellings (ATED) |
2026/27 |
2025/26 |
| UK residential property valued at more than £0.5m but not more than £1m |
£4,600 |
£4,450 |
| UK residential property valued at more than £1m but not more than £2m |
£9,450 |
£9,150 |
| UK residential property valued at more than £2m but not more than £5m |
£32,200 |
£31,050 |
| UK residential property valued at more than £5m but not more than £10m |
£75,450 |
£72,700 |
| UK residential property valued at more than £10m but not more than £20m |
£151,450 |
£145,950 |
| UK residential property valued at more than £20m |
£303,450 |
£292,350 |
| Economic crime (anti-money laundering) levy* |
2026/27 |
2025/26 |
| Small entity (less than £10.2m UK revenue) |
n/a |
n/a |
| Medium entity (UK revenue £10.2m - £36m) |
£10,000 |
£10,000 |
| Large entity (UK revenue £36m - £1bn) |
£36,000 |
£36,000 |
| Very large entity (UK revenue more than £1bn) |
£500,000 |
£500,000 |
* The Economic Crime Levy (ECL) is an annual charge that will affect entities (organisations) who are supervised under the Money Laundering Regulations (MLR) and whose UK revenue exceeds £10.2 million per year.
| Research and Development tax relief |
2026/27 |
2025/26 |
| R&D merged expenditure credit (RDEC) |
20% |
20% |
|
|
|
Film, high-end TV / videogame expenditures credit
|
25% or 34%
|
25% or 34%
|
Animation and Children’s TV expenditure credit
|
25% or 39%
|
25% or 39%
|
|
|
|
Open-ended investment companies and authorised unit trusts
|
20%
|
20%
|
|
|
|
Enhanced R&D Intensive Support (ERIS) is available for qualifying loss-making SMEs that meet the R&D intensity threshold (30%), providing a higher level of relief subject to specific conditions
| Patent box |
2026/27 |
2025/26 |
| Patent box |
10% |
10% |
ACCA LEGAL NOTICE - This is a basic guide prepared by ACCA UK's Technical Advisory Service for members and their clients. It should not be used as a definitive guide, since individual circumstances may vary. Specific advice should be obtained, where necessary.
