Corporation tax
Corporation tax rates and bands are as follows:
| Financial year to | 31 March 2020 | 31 March 2019 |
| 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 14th day of the 7th, 10th, 13th and 16th months after the commencement of a 12 month accounting period.
- Balance:
9 months and 1 day after the end of the accounting period.
From 1 April 2019 companies with taxable profits of £20 million or more are now required to pay corporation tax in quarterly instalments in the third, sixth, ninth and twelfth months of their accounting period. The £20 million threshold is divided by the number of companies in the group.
Beyond 31 March 2020
The rate of corporation tax reduces to 17% from 1 April 2020.
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