Corporation tax rates to change
The main rate of corporation tax will be reduced from 28% to 27% for the financial year commencing on 1 April 2011. This will be followed by further reductions to 26% on the 1 April 2012, 25% on April 2013 and 24% on 1 April 2014
Small Companies Rate
The small companies rate will be reduced to 20% from the 1 April 2011 from the current rate of 21%
The small companies rate applies to companies whose profit range from 0 – £300,000 in a financial year. This level is reduced depending on the length of the accounting period and also the number of associated companies a particular company may have.