Budget 2010 – Corporation Tax rates
The Chancellor has confirmed that both the main Corporation Tax rate and the small companies rate are to remain the same in FY 2011 as FY 2010.
The main Corporation Tax rate for companies with profits in excess of £1.5 million remains at 28%. The fraction used for companies with profits between £300,000 and £1.5 million (known as the marginal small companies’ rate) remains at 7/400 whilst the small companies rate stays at 21%.
There are special rules for companies with ‘ring fence profits’ in connection with oil extraction and oil rights. The rates remain the same as in previous years at 19% for small companies and 30% for profits in excess of £1.5million. The fraction to use for ring fence profits is 11/400.