TCM4000 Reference Section Inland Revenue Rates and Allowances
Corporation Tax

Taxable bands 2000 - 2001 2001 - 2002
Starting rate 10% £0 - £10,000 £0 - £10,000
Marginal relief £10,001 - £50,000 £10,001 - £50,000
Small companies’ rate 20% £50,001 - £300,000 £50,001 - £300,000
Marginal relief £300,001 - £1,500,000 £300,001 - £1,500,000
Main rate 30% £1,500,000 + £1,500,000 +

The main rate of corporation tax for 2002-03 will be 30%.

Marginal relief eases the transition from the starting rate to the small companies' rate for companies with profits between £10,000 and £50,000. The fraction for calculating this marginal relief will be 1/40.

Marginal relief also applies to companies with profits between £300,000 and £1,500,000. The fraction for calculating this marginal relief will also be 1/40.

The starting rate and the small companies' rate do not apply to close investment holding companies

Source: HM Government Inland Revenue