Corporation Tax
The 2008 Pre Budget Report included an announcement that the increase in the small companies' rate of 1 percent due to be introduced from 1 April 2009 will be deferred for one year.
Corporation tax rates and bands are as follows:
| Financial Years to |
31 March 2009 and 31 March 2010 |
31 March 2008 |
| Taxable profits |
|
|
| First £300,000 |
21% |
20% |
| Next £1,200,000 |
29.75% |
32.5% |
| On profits over £1,500,000 |
28% |
30% |
| Tax credit on dividends |
10% |
10% |
| Marginal relief fraction |
7/400 |
1/40 |
Corporation Tax Payable
For small and medium sized companies
- Nine months and 1 day after the end of the accounting period
For large companies
- Instalments
- The 14th day of the seventh, tenth, 13th and 16th months after the commencement of a 12 month accounting period
- Balance
- Nine months and one day after the end of the accounting period
Did you know?
That the Government expect to raise £45 billion in corporation tax receipts. This represents a decrease of more than £6 billion when compared to the forecast on Budget Day in March 2008.
