What Corporation Tax rate does a small property company pay?
Last checked against the sources on
GOV.UK gives the Corporation Tax rate as 19% (the small profits rate) for profits of £50,000 or less, and 25% (the main rate) for profits above £250,000. Between £50,000 and £250,000 a company may be entitled to marginal relief. The limits are reduced for short accounting periods and for associated companies.
The rates
- Profits of £50,000 or less: the small profits rate of 19%.
- Profits above £250,000: the main rate of 25%.
- Profits between £50,000 and £250,000: the company may be entitled to marginal relief. GOV.UK links to separate guidance for the calculation.
When the limits are lower
GOV.UK says the £50,000 and £250,000 limits are proportionately reduced for short accounting periods, and according to the number of associated companies. A company that is one of several owned by the same people can therefore reach the higher rates at lower profits. The page does not give the formula, so check the guidance it links to.
Which rate applies to which year
You pay the rates that applied in your accounting period. If an accounting period spans a change in rates, GOV.UK says the tax is worked out for each rate by the number of days it applied.
How SPV Accounts helps
SPV Accounts works out the tax from the confirmed figures, applying the small profits rate, marginal relief and the associated-company limits, and shows how the tax was reached.
Sources
General information checked against GOV.UK, not personal advice.