24th March 2010 BUDGET PROPOSALS
AND CHANGES FOR 2010/2011 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 2010 is deferred until 1st April 2011.

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 For accounting periods ending after 31st March 2008 the “enquiry window” for corporation tax returns will end 12 months after the filing of the return rather than the anniversary of the filing deadline.

5.4 From 24th March 2010 close companies will no longer receive a deduction for releasing or writing-off loans to a relevant person who is a participator in that company, or an associate of such a participator.