Corporation Tax Advice
Corporation tax is paid by limited companies on their profits. Corporation tax is not payable by the self-employed but does apply to the following organisations, even if they are not limited companies:
- members' clubs, societies and associations
- trade associations
- housing associations
- groups of individuals carrying on a business but not as a partnership (eg, co-operatives)
Corporation tax rates and bands are as follows:
|
Financial Year Commencing |
1 April 2005 |
1 April 2006 |
|
Taxable profits |
|
|
|
First £10,000 |
0% |
19% |
|
Next £40,000 |
23.75% |
19% |
|
Next £250,000 |
19% |
19% |
|
Next £1,200,000 |
32.75% |
32.75% |
|
On profits over £1,500,000 |
30% |
30% |
|
Non-corporate Distribution Rate |
19% |
N/A |