Corporation Tax

	Years to 31.3.09		Years to 31.3.08
	Profits Band	Rate	Profits Band	Rate
	£	%	£	%
Small companies rate	0 - 300,000	21*	0 - 300,000	20
Marginal (small companies) rate	300,001 - 1,500,000	29.75*	300,001 - 1,500,000	32.50
Full rate	Over 1,500,000	28*	Over 1,500,000	30
Small companies fraction		7/400*		1/40

* On Tuesday 13 May 2008 the Chancellor announced that the personal allowance for the 2008/09 tax year will be increased by £600 from £5,435 to £6,035, and the threshold at which someone starts to pay higher rate tax will be reduced. he point at which individuals start to pay higher rate income tax is sometimes called the "higher rate threshold". It is the total of the personal allowance and the basic rate limit. To reduce the higher rate threshold as announced by the Chancellor, the basic rate limit will be reduced by £1,200 from £36,000 to £34,800. Higher rate taxpayers will see no difference in the amount of tax they pay. These rates do not reflect this change which is not due to come into force until September 2008. At the time of publishing it remains to be seen what other knock-on changes, particularly to NI, will be made.