What is Corporation Tax?

Corporation Tax is levied on the taxable profits of UK limited companies and some other organisations. From April 2023, the main rate is 25% for profits above £250,000, with a small-profits rate of 19% applying to profits up to £50,000 and marginal relief between the two thresholds. Companies must file a Company Tax Return (CT600) with HMRC within 12 months of the end of their accounting period and pay any tax due within 9 months and 1 day. Research and Development (R&D) tax credits can significantly reduce a company's Corporation Tax bill.