Corporation Tax 2019/20

Rates from1.4.20191.4.2018
Corporation Tax rate19%19%


  1. Most companies must pay their Corporation Tax within nine months and a day after the end of the accounting period.
  2. Large companies or groups generally make four quarterly payments on account of Corporation Tax, starting in either the third or seventh month after the start of a 12-month accounting period, depending on level of profits. Interest runs on any underpayments until final settlement of the period’s liability.
  3. All companies must file Corporation Tax returns online within 12 months after the end of the accounting period.

Research and Development

SME enhanced deduction130%
Large company above the line credit (RDEC)12%


  1. The above enhanced deduction is for qualifying revenue expenditure on qualifying R&D projects; various conditions apply to both terms.
  2. Where an SME makes a loss it can surrender that loss for a payable tax credit worth 14.5% of the loss.
  3. RDEC is a taxable expenditure credit for qualifying R&D.

Special reliefs

Intangible assets: goodwill, know-how and patent rightsDeduction given according to depreciation in the accounts, unless the circumstances in Note 1 – 3 below apply.
Patent income10% rate of CT.
Creative industries producing: films, high-end or children’s TV programmes, video games or theatre productionsEnhanced deductions for certain expenditure and losses surrendered for payable tax credits.


  1. No deduction for goodwill arising on incorporations from 3.12.14.
  2. No deduction for other purchased goodwill acquired from 8.7.15 to 5.4.19.
  3. Deduction at 6.5% pa for purchased goodwill and certain customerrelated intangibles from 6.4.19, but qualifying amount limited to 6 x qualifying intellectual property purchased at the same time.
  4. The above is a brief summary of selected reliefs available to companies; other conditions apply in each case.