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Our budget views in blue: Corporation tax rate

22nd March 2012

Large companies corporation tax rate is reduced to 24% from 1 April 2012 Falling 1% each year until 2012 (to 22%)
The small companies’ rate at 20%.

Large companies have over £300,000 profits. Small companies have less. This is great for large companies – and investment from overseas. A good thing for investors and the economy (Britain is considered a favourable tax jurisdiction for companies as it is).
What puzzles us is that the small companies didn’t receive a similar incentive. Are the government not the champions of small business? Nevertheless – see below for a shot in the arm for small businesses