J.R. Holt Accountancy Rates and Allowances

Rates and Allowances - Corporation Tax

Financial year 2000-01 (£)		Financial year 2001-02 (£)
Starting rate 10%	0 - 10 000	Starting rate 10%	0 - 10 000
Marginal relief	10 001 - 50 000	Marginal relief	10 001 - 50 000
Small companies’ rate 20%	50 001 - 300 000	Small companies’ rate 20%	50 001 - 300 000
Marginal relief	300 001 - 1 500 000	Marginal relief	300 001 - 1 500 000
Main rate 30%	1 500 001 or more	Main rate 30%	1 500 001 or more

The main rate of corporation tax for 2002-03 will be 30%.

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 for calculating this marginal relief will be 1/40. Marginal relief also applies to companies with profits between £300,000 and £1,500,000. The fraction for calculating this marginal relief will also be 1/40.

The starting rate and the small companies' rate do not apply to close investment holding companies.

Corporation Tax on chargeable gains: Indexation Allowance