When the main CT rate increases to 25% from 1 April 2023, companies with profits below £50,000 will continue to pay tax at just 19%. Companies with profits between £50,000 and £250,000 will pay CT at a marginal rate. These figures are reduced where there are associated companies, and where the accounting period is less than 12 months.
HMRC have published a calculator to show how much marginal relief will be due for companies eligible for relief from the main rate.
Marginal relief is not available for:
- companies not resident in the UK;
- close investment holding companies; or
- companies with profits of £250,000 or more (reduced for associated companies).