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Corporation tax

The Chancellor announced the following reduction in corporation tax rates effective from 1 April 2002 (i.e. retrospectively).

  • The small companies&#39 rate of corporation tax has been reduced from 20% to 19%, and applies where a company has profits of between £50,001 and £300,000.
  • Where a company&#39s profits do not exceed £10,000 there is a new starting zero rate &#45 a dramatic reduction from the 10% rate applying previously. Any profit between £10,001 and £50,000 will be assessable at the marginal rate of 23.75%.
  • The main rate of corporation tax will continue to be at 30% and will apply to profits of a company of more than £1,500,000.
  • In between the £300,000 and £1,500,000 figures, marginal rate relief applies. This operates to increase the overall rate of tax to somewhere between the small companies&#39 rate of 19% and the main rate of 30%. Profits in excess of £300,000 will effectively bear tax at the marginal rate of 32.75%.


Membership drive will raise funds for children&#39s charity

The Catholic Building Soc-iety is running a new marketing campaign to help it raise £130,000 for charities over the next four years and to increase its membership.The member get member initiative is designed to promote greater loyalty among its members, as well as provide financial support to the children&#39s charity The Railway Children.CBS donated £18,000 […]

Other IFA Budget news in brief

The Inland Revenue has moved to clarify rules regarding individuals with powers over trusts, stating they will not have to pay inheritance tax unless in exceptional circumstances. The decision follows a recent Court of Appeal case – Melville versus CIR – which threw into doubt the powers of individuals to amend trusts. From this week, […]

At last, some good news for IFAs from the Chancellor

It was a Budget about insurance. National Insurance, that is. Chancellor Gordon Brown unambiguously ruled out private medical insurance and social insurance to pay for an improved health service, bunging a penny on National Insurance to provide an extra £8bn for the NHS.To ensure the billions will be spent properly, there will be yearly NHS […]

ScotLife slashes terminal bonuses

Scottish Life has slashed terminal bonus rates only months after deciding not to pay additional reversionary payments from its demutualisation.The company says “the reduction continues the process of smoothing down payouts to reflect stockmarket falls over the past two years of so”.ScotLife provoked criticism when it did not pay out the promised additional reversionary bonus […]

The curious market reaction to Brexit

Written by Mike Riddell29 June 2016 Headlines over the past few days have screamed about record falls in sterling, record low bond yields and massive falls in equity prices. However, if you take a slightly longer view of markets rather than simply the one- or two-day reaction, I think it’s amazing how little markets have […]


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