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George Bull
Senior Tax Partner

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T: 020 3201 8000
F: 020 3201 8001

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Corporation tax rate changes

Our predictions

Tax rates and thresholds

The rate of CT for small companies did not increase from 21% to 22% in 2009 (as had been announced in 2007) due to the financial state of the economy. It is even possible that this will be reduced to 20% and the standard rate reduced from 28% to 25% in order to make the UK a little more competitive.

One of the reasons for progressively increasing the small companies' rate was to address the advantage offered for businesses to operate as companies and for profits to be extracted tax efficiently. This may be reason enough for not reducing the small companies' rate. However, if there was a further restriction on the availability of capital allowances there might be scope for reducing the headline rates to apply to a higher tax base.