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The Rates and allowances template holds the corporation tax rates, thresholds and capital allowance rates that the rest of the workflow uses. The statutory rates are populated automatically for the accounting period, so in most cases you only need to confirm them — but it is also where you enter company-specific figures such as the Annual Investment Allowance the company is claiming.

Table of contents 

When should I use this template?

Open Rates and allowances to check the rates being applied to the return, and to enter any company-specific allowance figures. Because other templates read their rates from here, confirm the figures are correct for the accounting period before finalising the computation.

What does the template hold?

The template maintains, by financial year, the key figures used across the workflow, including:

  • Main rate of corporation tax — 25% for financial years from 1 April 2023.
  • Small profits rate — 19%.
  • Marginal relief limits and fraction — lower limit £50,000, upper limit £250,000, standard fraction 3/200 (limits divided by the number of associated companies).
  • Annual Investment Allowance (AIA) limit — £1,000,000.
  • Writing-down allowance (WDA) rates — main pool and special rate pool.
  • Super-deduction / special rate allowance — the 130% super-deduction and 50% first-year allowance rates for the periods in which they applied.
  • Structures and buildings allowance (SBA) rate — 2% before 1 April 2020 and 3% from 1 April 2020.

Where an accounting period straddles a change of rate, the template holds the figures for each financial year so other templates can apportion correctly.

What can I enter?

Most figures are the statutory rates and are pre-filled. The main company-specific input is the AIA used / claimed by the company — enter the AIA the company is claiming so the capital allowance templates cap the AIA correctly (relevant where the £1,000,000 limit is shared in a group or the period is short). Individual rate/allowance values can also be adjusted where a specific figure applies. The template also identifies whether a long period of account applies and holds the number of days in each accounting period, used elsewhere to apportion allowances and profits.

What flows through to the rest of Corporation Tax?

Almost every calculating template depends on Rates and allowances: the tax calculation (rates, limits and marginal relief), capital allowances (AIA, WDA, super-deduction, SBA) and any calculation that apportions over the accounting period (using the day counts held here).

Frequently asked questions

Do I need to enter the rates myself?

No — the statutory rates are pre-filled. Check them, and enter company-specific figures such as the AIA the company is claiming.

Where do I set the AIA the company is claiming?

In the AIA used / claimed field here; the capital allowance templates use it to cap the allowance.

Which corporation tax rate applies to my company?

19% at or below £50,000 of augmented profits, 25% above £250,000, and the main rate less marginal relief (fraction 3/200) in between — with the limits divided by the number of associated companies.

Why do the SBA or WDA rates differ within one period?

Where the period straddles a rate change (for example the SBA change on 1 April 2020), the template holds the figure for each financial year so the allowance can be apportioned on a daily basis.