Financial year 2019-20(1) Financial year 2020-21 Financial year 2021-22
Main rate 19% 19% 19%
North Sea oil and gas ring fence profirs rates (2) See footnote See footnote See footnote

(1) From 1 April 2015, for all profits except North Sea oil and gas ring fence profits, corporation tax is paid at a single rate. For 2019 to 2020 the rate is 19%.

(2) For North Sea oil and gas ring fence profits the main rate is 30% and the small profits rate is 19%. The marginal relief ring fence fraction is 11/400ths.

Financial year 2019-20 Financial year 2020-21 Financial year 2021-22
Plant and machinery:
main rate expenditure
18% 18% 18%
Plant and machinery:
special rate expenditure
6% 6% 6%
Structures and buildings
allowances (SBA)
2% 3% (1) 3%
Annual Investment Allowance (AIA) £1,000,000 £1,000,000 / £200,000 (2) £200,000
First year allowances for certain energy-saving / water efficient products 100% N/A (3) N/A

(1) Structures and Building Allowance will be increased from 2% to 3% from April 2020

(2) An Annual Investment Allowance of £1m will apply to investments made from 1 January 2019 until 31 December 2020. The AIA for investments before and after those dates will be £200,000. 

(3) From 1 April 2020 for incorporated businesses and from 6 April 2020 for unincorporated businesses, environmental enhanced capital allowances will be abolished.

Financial year 2019-20 Financial year 2020-21 Financial year 2021-22
R & D tax credits SME scheme 230% 230% 230%
R & D SME payable credit 14.5% 14.5% 14.5%
R & D Expenditure Credit 12% 13% (1) 13%
Patent Box (2) 10% 10% 10%

(1) The R&D Expenditure Credit will increase from 12% to 13% from April 2020.

(2) The Patent Box has been phased in from April 2013 , with companies being able to claim 60% of the benefit

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Financial year 2019-20 Financial year 2020-21 Financial year 2021-22
Film tax relief 25% 25% 25%
High-end TV tax relief 25% 25% 25%
Videogames tax relief 25% 25% 25%
Open ended investment companies and authorised unit trusts(1) 20% 20% 20%

(1) For open ended investment companies and authorised unit trusts the applicable corporation tax rate is 20 per cent.