# UK Corporation Tax Return (CT600)

> UK companies pay corporation tax at 19% on profits up to £50,000, 25% on profits above £250,000, and an effective rate in between through marginal relief (limits are shared among associated companies). Tax is payable nine months and one day after the year-end, and the CT600 return is due 12 months after it. Companies must register for corporation tax within three months of starting to trade.

Practice: UK Business Services — https://www.industax.com/services/uk-business/

Group companies — for example a UK subsidiary of an Indian parent — share the £50,000 and £250,000 limits with associated companies, which often pushes them to higher effective rates.

We prepare the computation and return with partner UK accountants and coordinate transfer pricing and Indian tax credits on dividends.

## Key facts

| Item | Detail |
| --- | --- |
| Small profits rate | 19% (up to £50,000) |
| Main rate | 25% (above £250,000) |
| Payment | 9 months + 1 day after year-end |
| Return | 12 months after year-end |
| Associated companies | Limits divided between them |

## Who needs this

- UK limited companies
- UK subsidiaries of Indian groups
- Freelancers trading through UK companies

## What's included

- Tax computation
- CT600 filing
- Planning for reliefs

## Documents

- Annual accounts
- Fixed asset additions
- Group structure

## Process

1. **Compute** — Taxable profit and reliefs.
2. **Pay** — Tax by the payment date.
3. **File** — CT600 submitted.

Work that legally requires a UK accountant is signed by a partner professional; Indus Tax coordinates it.

## FAQs

### Does a UK subsidiary of an Indian company get the 19% rate?

The thresholds are divided among associated companies worldwide, so a subsidiary in a group often has much lower limits and pays closer to 25%.

### Are dividends from a UK company taxed in India?

Yes, in the hands of the Indian shareholder, with treaty relief where available.

### Can R&D costs reduce UK tax?

Qualifying R&D can attract relief under the UK's merged R&D scheme, subject to conditions.

## Official sources

- HMRC — Corporation Tax and VAT: https://www.gov.uk/corporation-tax

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Canonical page: https://www.industax.com/services/uk-business/uk-corporation-tax-ct600
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.