Small Businesses

Trade and Industry written question – answered on 12th February 2004.

Alert me about debates like this

Photo of Stephen O'Brien Stephen O'Brien Shadow Secretary of State for Business, Innovation and Skills, Shadow Secretary of State for Industry

To ask the Secretary of State for Trade and Industry what feedback she has received from small companies in relation to the impact of the higher marginal rate on profits in the band £10,000 to £50,000 since its introduction; and what her assessment is of the impact.

Photo of Dawn Primarolo Dawn Primarolo Paymaster General (HM Treasury)

I have been asked to reply.

The introduction of lower rates of corporation tax has reduced the corporation tax liability of small companies, and has been welcomed by business. The introduction of the starting rate of corporation tax in April 2000, now at 0 per cent., and the reduction in the small companies' rate in April 2002 to 19 per cent. will together have reduced the CT liability of companies who make profits of between £10,000 and £50,000 by £2,000 at the lower end of this range to £500 at the higher end.

Does this answer the above question?

Yes1 person thinks so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.