CTM03653 - Corporation Tax: small companies: example 3

This example involves small companies rate for the financial year 2007 (i.e. the year beginning 1 April 2007) when the small companies rate of CT was changed from 19% to 20%.

A company provides the following information concerning its accounting period for the year ended 30 September 2007.

The ICTA88/S13 profits are chargeable profits (£150,000) + non-group franked investment income received (£0) = £150,000.

The accounting period straddles 1 April 2007 when the CT small companies rate was changed and so the profits will need to be apportioned up to and from this date in order to apply the correct rate for the financial year.

As the profit of £150,000 falls below the lower relevant maximum amount (£300,000), the small companies rate would apply.

1 October 2006 - 31 March 2007 

1 April 2007 - 30 September 2007 

CT due £29,252.04.