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.