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.
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