Chancellor announces corporation tax reductions in Emergency Budget

22 June 2010

In his emergency Budget on 22 June 2010, the Chancellor George Osborne announced that the small profits rate of corporation will fall from 21% to 20% from 1 April 2011. This is in place of the rise to 22% from that date which was previously due to take effect.

The main rate of corporation tax is to be cut by 4% from 28% to 24% over a four-year period. The rate will fall to 27% from 1 April 2011 and by a further 1% in each of the following three years.

The measure is subject to Parliamentary approval.

Further details can be found in Budget Note 02 and Budget Note 03.