| Main rate | 28% |
| Small companies rate (up to £300,000) | 21% |
| Marginal relief fraction (£300,000 to £1,500,000) | 7/400 |
Depreciation of fixed assets is added back in business tax computations and replaced by deductions for Capital Allowances:
| Plant and equipment | £50,000 annual investment allowance |
| Writing down allowance: standard rate | 20% (reducing balance) |
| Writing down allowance: long life assets | 10% (reducing balance) |
| Cars costing £12,000 and over | £3,000 pa and then reducing to 20% on balance below £12,000 |
Dividends are included in profit when calculating company tax and paid with a tax credit of 10% so that a dividend of £9,000 is equivalent to a gross dividend of £10,000 (10/9ths).
Shareholders whose total income does not exceed the basic rate threshold pay no additional tax and those whose income is above the threshold pay 32.5% on the excess: