Corporation Tax (CT)

Basis of charge

There are two rates of Corporation Tax (CT):

• 12.5% for trading income
• 25% for income from an excepted trade (as defined in part 2 of the Taxes Consolidation Act)
• 25% for non trading income, for example rental and investment income.

CT is charged on the profits in a company’s accounting period. This period cannot be longer than 12 months. If the tax rate changes in the accounting period, profits will be apportioned on a time basis and taxed accordingly.

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