Corporation Tax
Rate %
Years to 31.3.25 and 31.3.26
Profits band £
Small profits rate
0 - 50,000
19
Marginal rate
50,001 - 250,000 26.5
Main rate
Over 250,000
25
Marginal relief fraction 3/200 Profits limits are reduced for a company with associated companies. Different rates apply for ring-fenced (broadly oil industry) profit. Capital Allowances
First Year Allowance (FYA) on certain plant, machinery and cars of 0g/km (for cars purchased before 1 April 2026 (6 April 2026 for income tax)) Corporation tax FYA (‘full expensing’) on certain new, unused plant and machinery Corporation tax FYA on new, unused long-life assets, integral features of buildings, etc. Annual Investment Allowance £1,000,000 excluding cars Writing Down Allowance Long-life assets, integral features of buildings, cars over 50g/km
100%
100%
50%
6%
18%
Other plant and machinery
3%
Structures and Buildings Allowance
Pensions
2025/26 £268,275 £1,073,100
2024/25 £268,275 £1,073,100
Lump sum allowance
Lump sum and death benefit allowance
Annual allowance
£60,000
£60,000 £10,000
Money purchase annual allowance £10,000
Value Added Tax
From 1.4.25 From 1.4.24
Standard rate Reduced rate
20%
20%
5%
5%
Annual Registration Limit Annual Deregistration Limit
£90,000 £88,000
£90,000 £88,000
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