This article provides a detailed overview of the corporate tax regime in the United Kingdom (UK) for 2025. You will find a structured summary of statutory tax rates, progressive tax brackets, and key sector-specific surcharges applying to corporate profits.
Corporate Tax System in the UK: Core Features for 2025
The UK operates a progressive corporate tax structure, assessed at the company level. The taxable base is defined on corporate income, and all official rates below are quoted in British pounds sterling (GBP, £).
UK Corporate Tax Rates and Brackets (2025)
The following table summarizes the standard corporate tax rates for 2025:
| Taxable Profit Bracket (GBP) | Rate (%) |
|---|---|
| £0 – £50,000 | 19% |
| £50,001 – £250,000 | 19% |
| Over £250,000 | 25% |
For taxable profits up to £250,000, a rate of 19% applies. Profits above £250,000 are taxed at 25% in 2025. This structure means many UK companies still benefit from sub-20% rates at moderate profit levels.
Supplementary Corporate Taxes (Surcharges) in the UK
Several industries face additional surcharges, with notable sector-specific levies:
| Sector / Condition | Surcharge Rate (%) | Threshold / Basis (GBP) |
|---|---|---|
| Banking sector Supplementary tax (banking surcharge) |
3% | Profits over £100,000,000 |
| Oil & gas companies Supplementary Charge to Tax (SCT) |
10% | ‘Adjusted’ ring-fence profits |
| Oil & gas companies Energy Profits Levy (EPL) from 1 Nov 2024 |
38% | Ring-fence profits |
| Residential Property Developer Tax (RPDT) | 4% | Profits exceeding £25,000,000 from residential property development |
Note: These surcharges are in addition to the main corporation tax rates and affect only specified businesses. For oil and gas, surcharges create an exceptionally high effective tax burden on certain profits.
Assessment Basis and Withholding
UK corporation tax is determined based on corporate profits, and there is no publicly listed minimum holding period associated with particular rates or reliefs for general corporations in the data provided. For comprehensive statutory guidance, refer only to official government sources: www.gov.uk.
Additional Considerations for UK Corporate Tax in 2025
- Progressive Structure: The UK’s use of taxable brackets means small and medium-sized enterprises (SMEs) often face a markedly lower average rate compared to large, highly profitable groups.
- Sector-Specific Burdens: If you operate in banking, oil & gas, or residential property development, surcharges can dramatically increase your effective corporate tax rate. The Energy Profits Levy is especially notable in 2025 for oil and gas entities.
Pro Tips for Managing Corporate Tax in the UK
- Accurately calculate bracket thresholds: Establish clear profit projections to avoid unnecessary exposure to higher progressive rates above £250,000, particularly if your company is close to a bracket threshold.
- Review sector surcharge impacts: If your business falls under banking, oil and gas, or property development, ensure your finance team models total tax exposure—including all surcharges—when budgeting for 2025.
- Leverage official guidance: Always use the UK government’s main resource (www.gov.uk) for up-to-date rules, forms, and deadlines.
- Monitor cross-border arrangements: International groups should confirm UK tax exposure in relation to double taxation treaties and transfer pricing, as corporate tax in the UK is assessed at the company level.
Summary and Key Points
The UK’s corporate tax environment in 2025 presents a progressive structure, with a main rate of 19% for most companies up to £250,000 in profit and 25% on profits above that level. Additional sector-specific charges can materially increase liabilities, especially for banking, oil and gas, and large property developers. Careful profit planning, awareness of applicable surcharges, and regular review of official resources are essential in maintaining compliance and optimizing your UK corporate tax strategy.