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					          Corporation tax rates
Year      Standard rate       Advance          Small companies     Starting rate    Small companies      Small companies
                           Corporation Tax           rate
                               (ACT)a                                                                      marginal relief
                                                                                      rate threshold
                                                                                                             upper limit
1973-74             52%                  30%               42%                 —              £25,000               £40,000
1974-75             52%                  33%               42%                 —              £25,000               £40,000
1975-76             52%                  35%               42%                 —              £30,000               £50,000
1976-77             52%                  35%               42%                 —              £40,000               £65,000
1977-78             52%                  34%               42%                 —              £50,000               £85,000
1978-79             52%                  33%               42%                 —              £60,000             £100,000
1979-80             52%                  30%               40%                 —              £70,000             £130,000
1980-81             52%                  30%               40%                 —              £80,000             £200,000
1981-82             52%                  30%               40%                 —              £90,000             £225,000
1982-83             52%                  30%               38%                 —             £100,000             £500,000
1983-84             50%                  30%               30%                 —             £100,000             £500,000
1984-85             45%                  30%               30%                 —             £100,000             £500,000
1985-86             40%                  30%               30%                 —             £100,000             £500,000
1986-87             35%                  29%               29%                 —             £100,000             £500,000
1987-88             35%                  27%               27%                 —             £100,000             £500,000
1988-89             35%                  25%               25%                 —             £100,000             £500,000
1989-90             35%                  25%               25%                 —             £150,000             £750,000
1990-91             34%                  25%               25%                 —             £200,000           £1,000,000
1991-92             33%                  25%               25%                 —             £250,000           £1,250,000
1992-93             33%                  25%               25%                 —             £250,000           £1,250,000
1993-94             33%                  23%               25%                 —             £250,000           £1,250,000
1994-95             33%                  20%               25%                 —             £300,000           £1,500,000
1995-96             33%                  20%               25%                 —             £300,000           £1,500,000
1996-97             33%                  20%               24%                 —             £300,000           £1,500,000
1997-98             31%                  20%               21%                 —             £300,000           £1,500,000
1998-99             31%                  20%               21%                 —             £300,000           £1,500,000
1999-00             30%                    —               20%                 —             £300,000           £1,500,000
2000-01             30%                    —               20%               10%             £300,000           £1,500,000
2001-02             30%                    —               20%               10%             £300,000           £1,500,000
2002-03             30%                    —               19%                0%             £300,000           £1,500,000
2003-04             30%                    —               19%                0%             £300,000           £1,500,000
2004-05             30%                    —               19%                0%b            £300,000           £1,500,000
2005-06             30%                    —               19%                0%b            £300,000           £1,500,000
2006-07             30%                    —               19%                 —             £300,000           £1,500,000
2007-08             30%                    —               20%                 —             £300,000           £1,500,000
2008-09             28%                    —               21%                 —             £300,000           £1,500,000
2009-10             28%                    —               21%                 —             £300,000           £1,500,000
2010-11             28%                    —               21%                 —             £300,000           £1,500,000
2011-12             26%                    —               20%                 —             £300,000           £1,500,000
2012-13             24%                    —               20%                 —             £300,000           £1,500,000


                Sources: Various HMRC Budget Notices and Tolley's Corporation Tax. Latest rates available at
                http://www.hmrc.gov.uk/rates/corp.htm

                Footnotes
                a The rate of ACT used here is given by the ACT payment as a share of the gross dividend (i.e. of the dividend
                payment plus accompanying dividend tax credit).
                b 19% for profits distributed to shareholders.
                     Small companies         Lower rate   Lower rate      Lower rate
                                             threshold     marginal
                      marginal relief                                    marginal relief
                                                          relief upper
                         fraction                            limit          fraction
                                     1/6             —             —                 —
                                     1/6             —             —                 —
                                     3/20            —             —                 —
                                     4/25            —             —                 —
                                     1/7             —             —                 —
                                     3/20            —             —                 —
                                     7/50            —             —                 —
                                     2/25            —             —                 —
                                     2/25            —             —                 —
                                     7/200           —             —                 —
                                     1/20            —             —                 —
                                     3/80            —             —                 —
                                     1/40            —             —                 —
                                     3/200           —             —                 —
                                     1/50            —             —                 —
                                     1/40            —             —                 —
                                     1/40            —             —                 —
                                     9/400           —             —                 —
                                     1/50            —             —                 —
                                     1/50            —             —                 —
                                     1/50            —             —                 —
                                     1/50            —             —                 —
                                     1/50            —             —                 —
                                     9/400           —             —                 —
                                     1/40            —             —                 —
                                     1/40            —             —                 —
                                     1/40            —             —                 —
                                     1/40       £10,000       £50,000             1/40
                                     1/40       £10,000       £50,000             1/40
                                    11/400      £10,000       £50,000            19/400
                                    11/400      £10,000       £50,000            19/400
                                    11/400      £10,000       £50,000            19/400
                                    11/400      £10,000       £50,000            19/400
                                    11/400           —             —                 —
                                     1/40            —             —                 —
                                     7/400           —             —                 —
                                     7/400           —             —                 —
                                     7/400           —             —                 —
                                     3/220           —             —                 —
                                     1/100           —             —                 —




e. of the dividend
          Rates of capital allowances                                         %
Year                                 a                Industrial buildings
                 Plant and machinery
             First Year       Writing downb        Initial        Writing downc
1973-74                 100               25                40                  4
1974-75                 100               25               50d                  4
1975-76                 100               25                50                  4
1976-77                 100               25                50                  4
1977-78                 100               25                50                  4
1978-79                 100               25                50                  4
1979-80                 100               25                50                  4
1980-81                 100               25                50                  4
1981-82                 100               25                75                  4
1982-83                 100               25                75                  4
1983-84                 100               25                75                  4
1984-85                  75               25                50                  4
1985-86                  50               25                25                  4
1986-87                    0              25                 0                  4
1987-88                    0              25                 0                  4
1988-89                    0              25                 0                  4
1989-90                    0              25                 0                  4
1990-91                    0              25                 0                  4
1991-92                    0              25                 0                  4
1992-93                 40e               25               20e                  4
1993-94                    0              25                 0                  4
1994-95                    0              25                 0                  4
1995-96                    0              25                 0                  4
1996-97                    0              25                 0                  4
1997-98                 50fg              25                 0                  4
1998-99                   fg              25                 0                  4
                        40
1999-00                 40g               25                 0                  4
2000-01                 40g               25                 0                  4
2001-02                 40g               25                 0                  4
2002-03                 40g               25                 0                  4
2003-04                 40g               25                 0                  4
2004-05                40gh               25                 0                  4
2005-06                 40g               25                 0                  4
2006-07                40gh               25                 0                  4
2007-08                40gh               25                 0                  4
2008-09                   0i              20                 0                  3
2009-10                     i             20                 0                  2
                         40
2010-11                   0i              20                 0                  1
2011-12                   0i              20                 0                  -
2012-13                   0i              18                 0                  -


               Sources:Various Inland Revenue Statistics and HM Revenue and Customs Statistics and Tolley's Corporation Tax.
               http://www.hmrc.gov.uk/stats/corporate_tax/a5_apr06.pdf summarises pre-2007 system.

               Footnotes
               a) Long-lived plant and machinery attracted a 6% writing down allowance from November 1996 to March 2008, and 10%
               from April 2008 onwards. It also attracted 12% first year allowance for small- and medium-sized enterprises from July 1997
               to July 1998.
               b) Written down on a declining-balance basis, meaning that, if the allowance is 20%, then for each £100 of investment,
               taxable profits are reduced by £20 in the first year (20% of £100), £16 in the second year (20% of the remaining balance of
               £80) and so on.
               c) Written down on a straight line basis: with a 4% rate, then for each £100 of investment this simply reduces profits by £4
               per year for 25 years. Phased out in November 2011.
               d) From November.
               e) Applied from November 1992 to November 1993.
               f) From July.
               g) Only available for small- and medium-sized enterprises.
               h) 50% for small enterprises.
               i) 100% for the first £50,000 of investment.
h) 50% for small enterprises.
i) 100% for the first £50,000 of investment.
     Corporation Tax.



 96 to March 2008, and 10%
zed enterprises from July 1997

each £100 of investment,
% of the remaining balance of

 simply reduces profits by £4

				
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