Clause 25
Finance (No. 2) Bill
Public Bill Committees, 16 May 2006, 11:00 am
John Healey (Financial Secretary, HM Treasury; Wentworth, Labour)
The clause sets the small companies’ rate of corporation tax for the financial year 2006-07 at 19 per cent. for companies with under £300,000 profit; it is unchanged from previous years. The clause also sets the fraction used for calculating marginal relief on the main rate at 11/400ths, which ensures that companies with profits between £300,000 and £1.5 million face a smoothly rising average tax rate. That is also unchanged from the previous year. I commend the clause to the Committee.