Corporation tax rates and bands are as follows:

Financial Year to	31-Mar-10	31-Mar-11
Taxable profits
First £300,000	21%	21%
Next £1,200,000	29.75%	29.75%
On profits over £1,500,000	28%	28%
Tax credit on dividends	10%	10%
Marginal relief fraction	7/400	7/400

Corporation Tax Payable

For small and medium sized companies:

Nine months and 1 day after the end of the accounting period

For large companies:

Instalments Due - The 14th day of the seventh, tenth, 13th and 16th months after the commencement of a 12 month accounting period.
Balance Due - Nine months and one day after the end of the accounting period.

Corporation Tax - Small Companies Associated Company Rules

The corporation tax bands are divided by the number of associates a company has during its accounting period.

For the purposes of ICTA88/S13 (4), a company is an associated company of another at a given time if at that time:

1. one of the companies has control of the other, or
2. both of the companies are under the control of the same person or persons.

An associated company is counted even if it is an associated company for only part of an accounting period.

Two or more associated companies are counted even if they are associated companies for different parts of the accounting period.

An associated company which has not carried on any trade or business at any time during that accounting period (or, if it is an associated company for only part of that accounting period, at any time during that part of that accounting period) is to be disregarded.

April 2010 and Beyond

The 2010 Budget Report included an announcement that the increase in the small companies rate of 1% will be deferred for one year.

The small companies’ rate will remain at 21% from 1 April 2010 and will be increased to 22% from 1 April 2011.