Tax rates

Small profits rate

Small profits rate (companies with profits under £50,000) remains 19%.
Main rate (companies with profits over £250,000) is currently 25%.
Companies with profits between £50,000 and £250,000 will pay tax at the main rate, reduced by a marginal relief.

Tax planning strategies

Finding outside sources of capital can be a challenge for private companies. Tax planning can lead to an additional source of cash. The lower a private company's overall tax rate, the more cash is left at the end of each year for the owner to reinvest in the company, or to consider as profit.

Careful planning will help you limit the impact that the tax rate has on your capital gains.

Moving your profit

Companies can use legitimate reliefs to pay little or no tax.

Remember, tax avoidance - unlike tax evasion - is perfectly legal, so it is up to the government to change the rules to make these people pay more in tax.