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Corporation tax

Corporation tax rates and bands are as follows:

Financial year to 31 March 2021 31 March 2020
Taxable profits - main rate 19%  19% 
Corporation tax on outstanding loans to participators 32.5%   32.5% 
Diverted profits 25%  25% 

Corporation tax payable

For small and medium-sized companies

  • 9 months and 1 day after the end of the accounting period

For large companies

  • Instalments:

The fourteenth day of the seventh, tenth, thirteenth and sixteenth months after the commencement of a 12-month accounting period.

  • Balance:

9 months and 1 day after the end of the accounting period.

A large company is one whose taxable profits are over £1.5m. The £1.5m threshold is divided by the number of companies in the group.

Different rules apply for very large companies with taxable profits of £20m or more. These companies are required to pay corporation tax in quarterly instalments in the third, sixth, ninth and twelfth months of their accounting period. The £20m threshold is divided by the number of companies in the group.