Corporation tax — Rates
| Company rate 1, 2 | Profits | 2023/24 | 2022/23 |
|---|---|---|---|
| Small rate | Up to £50,000 | 19% | 19% |
| Marginal rate | £50,001 – £250,000 | 26.5% | 19% |
| Main rate | Over £250,000 | 25% | 19% |
- From April 2023 the main rate of corporation tax will increase to 25% on profits over £250,000. The rate for companies earning profits up to £50,000 will remain at 19%. Where a company’s profits fall between these upper and lower thresholds it will be entitled to marginal relief, which will deliver an effective tax rate between the thresholds of 26.5%. These rates and thresholds will continue to apply for the 2024 financial year.
- The UK government has devolved power to the Northern Ireland Assembly to set a Northern Ireland rate of corporation tax to apply to certain trading income once the Northern Ireland Executive has demonstrated to the UK government that its finances are on a sustainable footing, and the Northern Ireland Assembly sets the rate of corporation tax to be applied.