Corporation Tax Act 2010 section 3

Corporation tax rates

Section 3 establishes that corporation tax is charged at the main rate set by Parliament each financial year, subject to exceptions for smaller companies and other specific provisions.

• Corporation tax is charged at the main rate set by Parliament for each financial year.
• Companies with smaller profits may instead be taxed at the standard small profits rate under section 18A, rather than the main rate.
• Other provisions within the Corporation Tax Acts may also apply a different rate of corporation tax in specific circumstances.
• The main rate must be set annually, whereas the small profits rate and its associated limits can in principle be set at any time, though in practice they are set by the annual Finance Act.