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Taxes
/ Corporation Tax |
Corporation
Tax
A
tax payable by a company on its profits.
Below is a table showing the rates for corporation tax.
Financial
year 2003-04
|
Financial year 2003-04 (£) |
Financial year 2004-05 (£) |
|
Starting rate zero |
0 - 10 000 |
Starting rate zero |
0 - 10 000 |
|
Marginal relief |
10 001 - 50 000 |
Marginal relief |
10 001 - 50 000 |
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Small companies’ rate 19% |
50 001 - 300 000 |
Small companies’ rate 19% |
50 001 - 300 000 |
|
Marginal relief |
300 001 - 1 500 000 |
Marginal relief |
300 001 - 1 500 000 |
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Main rate 30% |
1 500 001 or more |
Main rate 30% |
1 500 001 or more |
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The corporation tax main rate is 30%.
The small companies' rate is 19 per cent for companies
with taxable profits between £50,000 and £300,000 and the starting rate
is zero for companies with taxable profits of £10,000 or below.
Marginal relief eases the transition from the starting
rate to the small companies' rate for companies with profits between
£10,000 and £50,000. The fraction used in the calculation of this
marginal relief will be 19/400. Marginal relief also applies to
companies with profits between £300,000 and £1,500,000. The fraction
used in the calculation of this marginal relief will be 11/400.
The
profits limits may be reduced for a company which is part of a group or
has associated companies. The lower rates and marginal reliefs do not
apply to close investment holding companies.
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