Corporation Tax
Companies with profits up to £50,000 19% Companies with profits over £250,000 25% Effective marginal rate (£50,000-£250,000) 26.5%
Capital Allowances - Plant & Machinery
Companies main rate (1/4/23 - 31/3/26) 100% (unlimited) special rate (1/4/23 - 31/3/26) 50%
Annual Investment Allowance 100% (up to £1m)
Writing Down Allowances - general 18%
special rate, cars, long life 6%
Value Added Tax
Standard rate 20%
Reduced rate 5%
Registration threshold £85,000 pa
Turnover limit - annual accounting £1,350,000 pa
cash accounting £1,350,000 pa
flat rate £150,000 pa
Car Benefit
CO2 emissions Electric range % of list price
0 N/A 2
1-50 >130 miles 2
1-50 70-129 4
1-50 40-69 7
1-50 30-39 11
1-50 <30 13
Above 50g of CO2 the % increase by 1% for every additional 5g up to a maximum of 37% at 165g or over. These rates apply to cars first registered after 1 April 2020. Rates for vehicles registered prior to that date are 1% higher up to the maximum of 37%.
Car Fuel Benefit is based on the same rate % as above multiplied by £27,800.
Tax-Free Mileage Allowances
Up to 10,000 business miles 45p
Over 10,000 business miles 25p
Each passenger making the same trip 5p
Motorcycles 24p
Cycles 20p
Pension Contributions
Annual allowance £60,000
Threshold income limit £250,000
Adjusted income limit £265,000
Minimum allowance £10,000
Lifetime allowance unlimited
Individuals may only make contributions up to the higher of 100% of taxable earnings or £3,600 (tax relief applied at source)
