Corporation Tax

Tax Data 2008 / 2009


	Financial Year
	2008/09	2007/08
Profits exceeding £1,500,000 (standard rate)	28%	30%
Profits under £300,000 (small companies rate)	21%	20%

Marginal relief fraction	7/400	1/40
Effective marginal rate on profits between £300,000 and £1,500,000	29.75%	32.75%

Note that for close investment holding companies the 30% rate will apply regardless of profit levels.

Tax Data 2007/ 2008

	Years to 31 Mar 08
	Profits Band £	Rate %
Small companies rate	0 - 300,000	20
Marginal (small companies) rate	300,001 - 1,500,000	32.5
Full rate	Over 1,500,000	30
Small companies fraction		11/400

* Minimum rate of 19% applies when profits are distributed to non-company shareholders.

The profits limits are reduced for accounting periods of less than 12 months and for a company with associated companies.

For information of users: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.

For further information, please email us on accountants@mitchells.org or call us on +44 (0) 1242 260066.

Mitchells Chartered Accountants, 41 Rodney Road, Cheltenham
Gloucestershire, GL50 1HX
Tel: +44 (0) 1242 260066 Fax: +44 (0) 1242 263707

For further information, please email us on accountants@mitchells.org

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