Budget 2002: corporation tax starting rate cut to zero

Manufacturing News, Source : TheManufacturer.com
Published : 17 Apr 2002 15:56

Gordon Brown has cut the starting rate of corporation tax from 10p to zero.

Capital gains tax will be cut from April to 20 per cent for business assets held for a year or more.

It will be cut to 10 per cent for assets held for more than two years. The Chancellor added there will be a new flat rate calculation for VAT for small firms.

He told the Commons: "Small companies with taxable profits of less than £10,000 will pay no corporation tax. This is now the most favourable corporation tax regime for small companies in any of the advanced industrial countries."

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