Company tax rates after the Budget

You're probably aware of the changes in the tax rates after the budget. If not I'll remind you! For the 2007 financial year you've got a small companies rate of 20% and a main corporation tax rate of 30%. By 2009 this is going to change to a 22% small companies rate and a 28% main company rate. However the marginal tax rates are also important. The new marginal tax rate will be 29.5%. This means that if a company has a gain of over £500K (and assuming no associated companies) then they'll be better off under the new provisions as the decrease in the main rate of corporation tax to 28% will outweigh the increase in the small companies rate. For more details of the tax changes check out this article on the new corporation tax rates