| Corporation Tax
Corporation tax rates and bands are as follows:
| Financial Year to |
31 March 2008 |
31 March 2007 |
| Taxable profits |
|
|
| First £300,000 |
20% |
19% |
| Next £1,200,000 |
32.5% |
32.75% |
| On profits over £1,500,000 |
30% |
30% |
| Tax credit on dividends |
10% |
10% |
| Marginal relief fraction |
1/40 |
11/400 |
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
That the Government expect to raise £50 billion of its £553 billion tax generating programme from corporation tax. In the last tax year this tax raised £50 billion. Thus the Government seeks to raise its receipts from corporation tax by over 11%.
April 2008 and Beyond
The main rate of corporation tax will be 28% for the year commencing 1 April 2008. The small companies' rate will be 21% from 1 April 2008 and 22% from 1 April 2009.
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2007/08 Rates and Allowances
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