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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.