United Kingdom — Tax: Corporate Tax

Why this matters

Understanding corporate tax in the UK is crucial for businesses considering relocation, as it can significantly impact their bottom line.

Key facts

• Combined statutory corporate income tax rate (national plus sub-national): 25% (2026)
• Central government rate: 25% (2026)
• Rate targeted at small businesses: 19% (2026)

Steps

1. Determining Corporate Tax Liability — Companies calculate their tax liability based on their taxable profits, and then apply the relevant tax rates. The UK's Corporate Tax Act 2010 outlines the rules for calculating taxable profits and determining the tax liability.

Costs

• Company tax return filing fee: varies depending on the complexity of the return

Timelines

• Filing deadline for company tax return: usually within 12 months of the company's accounting period end

Required documents

• Company tax return (CT600)
• Accounts and audit report (if required)
• Corporation Tax computation

Common mistakes

• Failing to submit the company tax return on time
• Not calculating taxable profits correctly

What this figure does not cover

This is the headline statutory rate. Deductions, reduced rates for particular sectors or regions, minimum taxes, local business taxes, withholding taxes and registration or filing procedures are not covered here. Check the national tax authority for your situation.