Corporation Tax rates and reliefs

Allowances and reliefs

You can deduct the costs of running your business from your profits before tax when you prepare your company’s accounts.

Anything you or your employees get personal use from must be treated as a benefit.

Some expenses aren’t allowed for Corporation Tax, for example entertaining clients - add these back to your profits when you prepare your Company Tax Return.

Capital allowances

Claim capital allowances if you buy assets that you keep to use in your business, for example:

  • equipment
  • machinery
  • business vehicles, for example cars, vans, lorries

Other reliefs

You may be able to make a claim for:

Marginal Relief

You can only claim Marginal Relief if your company had profits between £300,000 and £1.5 million that were either:

  • from before 1 April 2015
  • from oil rights or extraction in the UK or UK continental shelf