Tax Rates 2024/25



Income Tax
Annual investment limits
National Insurance Contributions
Vehicle Benefits
Tax-free mileage allowances
Capital Gains Tax
Corporation Tax
Main capital allowances
Property Taxes
Value Added Tax
Inheritance Tax
Key dates and deadlines
Useful rates
National minimum wage

Corporation Tax

Year to 31.3.2025 31.3.2024
Main rate (profits above £250,000) 25% 25%
Small profits rate (profits up to £50,000) 19% 19%
Marginal relief band (MRB) £50k – £250k £50k – £250k
Fraction in MRB (effective marginal rate) 3/200 (26.5%) 3/200 (26.5%)

Research and development relief  
Accounting periods beginning on or after 1.4.2024
R&D Expenditure Credit (RDEC) scheme*
R&D-intensive SMEs enhanced expenditure scheme**

*Taxable expenditure credit for qualifying R&D.

**Additional deduction for qualifying R&D

R&D-intensive companies are those that have R&D expenditure constituting at least 30% of total tax-deductible P&L expenses plus capitalised R&D costs. Loss-making R&D intensive companies can claim a payable credit rate of 14.5% from HMRC in exchange for their losses (capped at £20,000 plus 3 x [PAYE & NIC]).

Previously, most SMEs used the enhanced expenditure scheme, but with a payable tax credit rate for losses of 10% (or 14.5%, from 1 April 2023, for those with R&D expenditure constituting at least 40% of total expenditure).