Corporation Tax rates

Rates for financial years starting on 1 April
	2008	2009	2010	2011
Small Profits Rate*	21%*	21%*	21%*
Small Profits Rate can be claimed by qualifying companies with profits at a rate not exceeding	£300,000	£300,000	£300,000
Marginal Relief Lower Limit	£300,000	£300,000	£300,000
Marginal Relief Upper Limit	£1,500,000	£1,500,000	£1,500,000
Standard fraction	7/400	7/400	7/400
Main rate of Corporation Tax	28%*	28%*	28%*	28%*
Special rate for unit trusts and open-ended investment companies	20%	20%	20%

From 1 April 2010 onwards, the terminology used to describe some Corporation Tax rates and reliefs changed. This table reflects the new terminology but for ease the changes are shown below:

Small Profits Rate - previously Small Companies’ Rate
Marginal Relief - previously Marginal Small Companies’ Relief
Standard fraction - previously Marginal Small Companies’ Relief fraction
Ring fence fraction - previously Marginal Small Companies’ Relief fraction (ring fence profits)

The main rate of Corporation Tax applies when profits (including ring fence profits) are at a rate exceeding £1,500,000, or where there is no claim to another rate, or where another rate does not apply.

*For companies with ring fence profits (income and gains from oil extraction activities or oil rights in the UK and UK Continental Shelf) these rates differ. The Small Profits Rate of tax on those profits is 19 per cent and the ring fence fraction is 11/400 for financial years starting 1 April 2008, 2009 and 2010. The main rate is 30 per cent for financial years starting on 1 April 2009, 2010 and 2011.

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