Background Note
3.The main rate of corporation tax is paid by companies with profits over and above the upper limit (currently £1.5 million).
4.Where two or more companies are associated with one another, the upper limit is reduced. This is done by dividing the limit by the number of associated companies.
5.Companies with profits from oil extraction and oil rights in the UK and the UK Continental Shelf (“ring fence profits”) will continue to be subject to a separate main rate of corporation tax applicable to those ring fenced profits. This will remain at 30 per cent. Profits from activities which are not ring fenced will continue to be charged at the main rate of corporation tax applicable to all other profits.