On Budget Day the Chancellor announced that he was accelerating the planned reduction of the main rate of corporation tax as follows:-

01.04.2012                                                                              24%

01.04.2013                                                                              23%

01.04.2014                                                                              22%

In the longer term, the objective is to ‘align basic rate income tax, the small companies rate and the corporation tax rate’, presumably at 20%

For the financial year commencing 01.04.2012 the rates are:-

Main Rate                                                                               24%

Small companies rate                                                             20%

the effective rates of tax on a company’s profits will be:-

NIL – £300,000                                                                       20%

£300,001 to £1.5 million                                                          25%

Over £1.5 million                                                                     24%