Quick Answer
19% on profits up to £50,000 and 25% on profits over £250,000. Between those figures marginal relief applies, which produces an effective marginal rate of 26.5% on the…
19% on profits up to £50,000 and 25% on profits over £250,000. Between those figures marginal relief applies, which produces an effective marginal rate of 26.5% on the profits falling in the band.
Both thresholds are divided by the number of associated companies. If you control two companies, the small profits limit becomes £25,000 each, which frequently surprises people who set up a second company for a side venture.
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