The 25% main corporation tax rate applies to UK companies with profits exceeding £250,000, marking a significant increase from prior years' rates.

From April 2023 the UK increased its main corporation tax rate to 25%, up from 19%, impacting medium and larger companies directly. This policy shift aims to align tax revenue with fiscal goals but introduces challenges for growing small businesses that cross the upper profit threshold, requiring careful financial forecasting to mitigate sudden tax increases.