26 February 2014
Rate of Corporation Tax and Associated Companies
The small company rate of Corporation Tax of 20% applies to profits up to £300,000. The main rate of Corporation Tax in 2010 was 28%. In the year commencing March 2014 the main rate will reduce to 21% with a view to this becoming 20% for all companies in 2015. Where companies are associated by joint ownership the higher rate of tax could be incurred on relatively low profits. This problem of associated companies has largely been eliminated and will disappear from March 2015.
