ACCA Taxation F6 Practice Exam 2026 – Complete Study Resource

In the UK corporation tax system, companies are subject to different rates of tax based on their profits. The correct threshold for higher rates of corporation tax is set at £50,000. This means that companies with profits below this amount benefit from the small profits rate, which is generally lower than the main rate.

Once a company’s profits exceed the £50,000 mark, it starts to incur corporation tax at the higher main rate. This is significant for businesses as it impacts their overall tax liability and financial planning. Understanding this threshold is essential for businesses when assessing their financial strategies, as profits beyond this level result in a higher tax burden.

The other thresholds mentioned in the choices either fall below or are irrelevant for the specific question regarding when higher rates kick in. Therefore, knowing the £50,000 limit is crucial for accurately navigating the corporation tax landscape.