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Corporation Tax Allowances and Reliefs for 2018/19

Corporation Tax is the tax levied on the company’s profits, which is currently 19% for all profits (except for ring fence profits). For the year 2018/19 the R&D Expenditure Credit has been increased from 11% to 12%. R&D Expenditure Credit is designed to encourage big companies to invest in R&D in UK. It was established in the year 2013.

Corporation Tax Allowances and Reliefs for 2018/19

Financial year 2017 to 2018 Financial year 2018 to 2019
Plant and machinery: main rate expenditure 18% 18%
Plant and machinery: special rate expenditure 8% 8%
Annual investment allowance (AIA) £200,000 £200,000
First year allowances (e.g. for certain energy-saving/water efficient products) 100% 100%
Research and Development (R&D) tax credits small and medium sized business (SME) scheme 230% 230%
R&D SME payable credit 14.50% 14.50%
R&D Expenditure Credit 12% 11%
Patent Box 10% 10%
Film tax relief 25% 25%
High-end TV tax relief 25% 25%
Videogames tax relief 25% 25%
Open ended investment companies and authorised unit trusts25 20% 20%

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