Rates from 1 April 2026

There are no changes to corporation tax rates and thresholds for the financial year commencing 1 April 2026. These include the main rate of 25% for companies with profits over £250,000 and a small profits rate of 19% available to companies with profits below £50,000; a marginal rate of 26.5% applies to profits between the limits. If a company is part of a group or has associated companies, those profit limits are divided between them.

Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT)

From 6 April 2026, significant increases to the limits for companies to be eligible for EIS and VCT schemes are proposed as follows:

• The gross assets test will increase from £15 million to £30 million immediately before share issue and from £16 million to £35 million immediately after the issue.
• The annual investment limit for companies will be increased from £5 million to £10 million (from £10 million to £20 million for Knowledge-Intensive Companies (KICs)).
• The lifetime investment limit will increase from £12 million to £24 million (from £20 million to £40 million for KICs).

At the same time, the rate of income tax relief available to an individual investor in a VCT will be reduced from 30% to 20%; this change does not apply to the EIS.