Corporation Tax

Currently there's one corporation tax rate for all companies and that's 19 percent on the company's taxable profits so nice and simple but because of the state of the public finances a corporation tax main rate is going to increase to 25 percent from the first of April this year. The way they decided to deal with that creates what we call a marginal tax rate okay especially type of marginal tax rate here. You basically find out that the tax rate of an extra pound of profit turns out to be 26.5 percent you know it's not an official rate the official rates are 19 percent and 25 percent but it's a consequence of the mechanism in which the government have created to calculate the tax between those two