Tax tables
You'll learn the corporation tax rates that apply to companies and when each rate is used. This video covers the two main rates—19% for smaller companies and 25% for larger ones—plus the profit thresholds that determine which rate applies.
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In this lesson
- 0:00 Corporation tax rates overview
- 0:20 Main rate and small profits rate
- 1:03 Marginal relief and profit thresholds
- 1:22 Adjustments for periods and companies
About this lesson
Understanding these rates is essential for TX (Taxation) and forms the foundation for calculating corporation tax liability in your exam. The video explains that corporation tax applies to a company's taxable total profits within a financial year (1 April to 31 March). The small profits rate of 19% applies when augmented profits don't exceed £50,000, while the main rate of 25% applies when augmented profits reach £250,000 or above. If profits fall between these limits, marginal relief comes into play—a concept you'll explore in more detail as you work through corporation tax calculations. You'll also discover that both the upper and lower profit limits are adjusted for short accounting periods and the number of associated companies a business has. These adjustments are crucial for accurate calculations in real exam scenarios. Payment dates for corporation tax also depend on where a company's augmented profits sit relative to the profit threshold, so knowing these rates and thresholds helps you understand the full corporation tax framework.
Duration: 2m
Transcript
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