What is the corporation tax rate for profits over £250,000?

The correct answer indicates that higher rates apply from profits over £50,000, which aligns with the progressive tax system implemented in the UK. As of the latest fiscal updates, the corporation tax is structured to have a small profits rate for companies whose profits do not exceed £50,000, and beyond that income threshold, higher rates are applied progressively.

For profits over £250,000, a flat rate of 25% is applied, which reflects the current standard rate for larger corporations, ensuring that those with higher earnings contribute a fairer amount to the tax system. This tiered approach is designed to alleviate the tax burden on smaller businesses while ensuring that larger, more profitable companies pay their appropriate share.

The other options do not accurately reflect the structure of the current UK corporation tax system. A flat rate of 19% is outdated for the context provided, and stating that there is no corporation tax on profits over £250,000 misrepresents the tax obligations of larger companies.