2009/10

2008/09

Profits subject to tax

First £300,000

21%

21%

Next £1,500,000 (effective rate)

29.75%

29.75%

Profits over £1,500,000

28%

28%

Marginal relief fraction

7/400

7/400

Notes
The lower and upper limits for the small companies’ rate and the small companies’ marginal relief are reduced proportionally:

for accounting periods of less than 12 months, and

in the case of associated companies, by dividing the limits by the total number of non-dormant associated companies

The small companies rate was expected to increase from 21% to 22% from 1 April 2009. However, the Chancellor has announced that it will remain unchanged at 21%.