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Tax Information
Corporation Tax
Rates of corporation tax and advance corporation tax - main rate
| Financial Year |
|
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
| Full rate |
(4) |
30% |
30% |
30% |
30% |
30% |
28% |
| Starting rate |
|
0% |
0% |
0% |
- |
- |
- |
| first relevant amount |
(1) |
£10,000 |
£10,000 |
£10,000 |
|
|
|
| second relevant amount |
(1) |
£50,000 |
£50,000 |
£50,000 |
|
|
|
| marginal relief fraction |
|
19/400 |
19/400 |
19/400 |
|
|
|
| effective marginal rate |
(6) |
23.75% |
23.75% |
23.75% |
|
|
|
| Small companies rate |
(5) |
19% |
19% |
19% |
19% |
20% |
21% |
| lower relevant amount |
(1) |
£300,000 |
£300,000 |
£300,000 |
£300,000 |
£300,000 |
£300,000 |
| upper relevant amount |
(1) |
£1.5m |
£1.5m |
£1.5m |
£1.5m |
£1.5m |
£1.5m |
| marginal relief fraction |
|
11/400 |
11/400 |
11/400 |
11/400 |
1/40 |
7/400 |
| effective marginal rate |
(6) |
32.75% |
32.75% |
32.75% |
32.75% |
32.50% |
29.75% |
| Non-corporate distribution rate |
(2) |
- |
19% |
19% |
- |
- |
- |
| Tax credit: from 6 April |
(3) |
10% |
10% |
10% |
10% |
10% |
10% |
- Reduced proportionally for accounting periods of less than 12 months. The limits are divided by the number of associated companies (including the company in question).
- Applies where the underlying corporation tax rate is lower than 19% (TA 1988 x 13AB, Sch A2).
- Individual sharesholders not subject to higher rate tax have no further tax to pay. The abolition of the repayment of tax credit to charities was phased in over five years at 21% for 1999-2000, 17% for 2000-01, 13% for 2001-02, 8% for 2002-03 and 4% for 2003-04.
- For financial year 2009 the full rate of corporation tax will be 28%.
- The small companies rate will be 22% from 1 April 2009.
- For ring fenced trades, the small companies rate will remain at 19% for financial years 2007 and 2008 and the proposed change to both rates for 2009 will not apply.
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