Corporation Tax Rates and Allowances
Rates for financial years starting on 1 April
| 2006 | 2007 | 2008 | 2009 | |
| Small Companies Rate* | 19% | 20%* | 21%* | 21%* |
| Small Companies Rate can be claimed by qualifying companies with profits at a rate not exceeding | £300,000 | £300,000 | £300,000 | £300,000 |
| Marginal Small Companies Relief Lower Limit | £300,000 | £300,000 | £300,000 | £300,000 |
| Marginal Small Companies Relief Upper Limit | £1,500,000 | £1,500,000 | £1,500,000 | £1,500,000 |
| Marginal Small Company Relief (MSCR) Fraction | 11/400 | 1/40 | 7/400 | 7/400 |
| Main rate of Corporation Tax | 30% | 30% | 28%* | 28%* |
| Special rate for unit trusts and open - ended investment companies | 20% | 20% | 20% | 20% |
The main rate of Corporation Tax applies when profits (including ring fence profits) are at a rate exceeding £1,500,000, or where there is no claim to another rate, or where another rate does not apply.
Budget 2007 announced a staged increase in the small companies rate of Corporation Tax from 19 per cent to 20 per cent from April 2007, 21 per cent from April 2008 and 22 per cent from April 2009. However, the increase from 21 per cent to 22 per cent from April 2009 has been deferred until April 2010. This deferral was announced by the Chancellor in his November 2008 Pre-Budget Report and will apply from 1 April 2009.
* For companies with ring fence profits the small companies’ rate of tax on those profits remains at 19 per cent and the MSCR fraction 11/400 for financial years starting 1 April 2007, 2008 and 2009, and the main rate 30 per cent for financial years starting on 1 April 2008 and 2009. Ring fence profits mean the income and gains from oil extdaction activities or oil rights in the UK and UK Continental Shelf.
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