Tax Rates 2023/24

Corporation Tax

Year to 31.3.2024 31.3.2023
Main rate (all profits) N/A 19%
Main rate (profits above £250,000) 25% N/A
Small profits rate (profits up to £50,000) 19% N/A
Marginal relief band (MRB) £50k – £250k N/A
Fraction in MRB (effective marginal rate) 3/200 (26.5%) N/A

Research and development relief
SME enhanced expenditure
deduction scheme*

86%

130%
Large company R&D Expenditure
Credit (RDEC) scheme**

20%

13%

*Additional deduction for qualifying R&D

**Taxable expenditure credit for qualifying R&D

SMEs that make losses can surrender any R&D loss to HMRC in exchange for a payment of 10% (year to 31.3.23: 14.5%) of the loss (capped at £20,000 plus 3 x PAYE & NIC).