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Despite the publication (in August 2002) of a consultative document on corporation tax reform – including such issues as the taxation of unrealised capital gains and the removal of capital allowances (in the interest of aligning accounting and tax practice) no changes to corporation tax were announced so the rates we are working with for the financial year starting 1st April 2003 are as follows:

  • The small companies&#39 rate of corporation tax is 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 the starting zero rate will apply. Any profit between £10,001 and £50,000 will continue to 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%.



“He has always been portrayed as whiter than white but, if you look at the Pru&#39s track record, he may not be as white as we are led to believe. Sir Peter Davis heading the Government&#39s employer pension taskforce could be like the poacher becoming the gamekeeper.” Christopher Hind, Crossley MacKenzie “Yes. It is just […]

Biggest job cuts for six years hit financial services

Financial services companies have slashed jobs at the fastest rate for more than six years according to latest research by CBI/PriceWaterhouseCoopers. Its quarterly survey showed a 30 perc ent drop in staffing over the last three months, the biggest since September1996. The research also showed two consecutive quarters of declining business for the first time […]

Chelsea site claims DIP in five minutes

Chelsea Building Society is setting up a mortgage intermediary website which it claims can provide an adviser with a decision in principle in five minutes.The site has been developed over the last 12 months and aims to provide a simple and speedy application process for mortgages and allow advisers to review the status of cases.Chelsea […]

Employee share schemes

Proposals have been announced to simplify and modify legislation in certain areas. CSOP Under the Company Share Option Plan (CSOP), which is the discretionary approved share option scheme under which options can be granted for up to £30,000 for an employee, it will be possible to exercise options, without the tax benefits, within 3 years […]

Developing your personal relationships – Webex

Read more 9amFinancial advisers and solicitors working together Presented by Ian Muirhead, director & chairman at Solicitors for Impartial Advice (SIFA) Listen to Ian’s expert insight and experiences of how financial advisers and solicitors can work together to deliver mutual benefit and enhanced client outcomes. Register here 10am Financial advisers and accountants working together Presented […]


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