23rd March 2011 BUDGET PROPOSALS
AND CHANGES FOR 2011/2012 previously announced
(Subject to details in the Finance Bill)
Ellis Atkins have taken all due care in the presentation of these notes. No responsibility for loss occasioned to any person or company acting or refraining from action as a result of any material in these notes can be accepted by Ellis Atkins, its partners or staff. Please contact us or your own professional advisor for advice specific to your circumstances.

5.1 The rates of Corporation Tax are as follows:

The planned small companies’ rate increase to 22% from 1st April 2011 is removed, with the rate reduced to 20% instead.

The small companies’ rate applies to profits up to £300,000 with marginal relief up to £1,500,000. The mainstream rate applies to profits over £1,500,000.

5.2 Companies are required to notify HMRC of commencement of trading within 3 months of starting to trade.

5.3 Northern Ireland may be able to set its own corporation tax rate in the future. This is subject to a consultation between the Government and the Northern Ireland Executive.