Budget Resolutions 2004 — Non-Corporate Distribution Rate — 23 Mar 2004 at 19:46

The majority Aye voters agreed to introduce a 'non-corporate distribution rate (NCDR)'[1].

This rate "ensured that where a company paid below the small companies' [corporation tax rate][2] (19% in 2004), dividend payments made to non-corporates (for example, individuals, trusts and personal representatives of deceased persons) would be subject to additional corporation tax, bringing the corporation tax paid up to 19%. For example, a company making £10,000 profit, and making a £6,000 dividend distribution to an individual and £4,000 to another company would pay 19% corporation tax on the £6,000."[3]

The background to this measure is the starting rate for corporation tax introduced by Gordon Brown in his 1999 budget[4]. This meant companies who made a profit between £0 and £10,000 per year were taxed at 10% on those profits.

However, in the 2002 budget Gordon Brown reduced this starting rate to 0%[5] meaning, of course, companies with profits of no more than £10,000 paid no corporation tax.

Labour wanted to introduce the NCDR because when the starting rate was set to 0% in 2002 this resulted in a large number of small businesses turning themselves into companies[6]. Consequently, many of these businesses were avoiding paying corporation tax.


Debate in Parliament | Historical Hansard | Source |

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Party Summary

Votes by party, red entries are votes against the majority for that party.

What is Tell? '+1 tell' means that in addition one member of that party was a teller for that division lobby.

What are Boths? An MP can vote both aye and no in the same division. The boths page explains this.

What is Turnout? This is measured against the total membership of the party at the time of the vote.

PartyMajority (Aye)Minority (No)BothTurnout
Con0 125 (+2 tell)078.4%
DUP0 4066.7%
Independent0 1050.0%
Independent Conservative0 20100.0%
Lab290 (+2 tell) 0071.6%
LDem0 46085.2%
PC0 3075.0%
SNP0 50100.0%
UUP0 50100.0%
Total:290 191074.8%

Rebel Voters - sorted by party

MPs for which their vote in this division differed from the majority vote of their party. You can see all votes in this division, or every eligible MP who could have voted in this division

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no rebellions

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