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ACCA Applied Skills · Taxation (UK) · The use of exemptions and reliefs in deferring and minimising corporation tax liabilities

Under the tax tables, what is the corporation tax small profits rate for financial year 2025, which applies where a company's profits do not exceed the lower limit of £50,000?

The small profits rate is 19% for financial year 2025, applying where profits are at or below £50,000. Profits above £250,000 are taxed at the 25% main rate, and marginal relief applies to profits between the two limits.

  1. A19%Correct
  2. B25%
  3. C20%
  4. D21%

Explanation

The tax tables give a small profits rate of 19% for financial year 2025, applying to profits up to the lower limit of £50,000. The main rate of 25% applies to profits above the upper limit of £250,000. Marginal relief applies between the limits.

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