Budget Resolutions 2004 — Corporation Tax (Charge and Rate for 2005) — 23 Mar 2004 at 19:32

The majority Aye voters passed a motion^[1] which set the main corporation tax rate for the 2005 financial year. This rate was set at 30% and was unchanged from the previous year^[2].

Corporation tax is, very simply, a tax on the profits of a company resident in the UK. There is a main rate of corporation tax which applies to companies with profits of over £1.5 million per year. Companies qualify for the lower rate when their profits are at or below £300,000 per year (this 'small companies' corporation tax' rate was set at 19% for 2004/05 - also unchanged from the previous year).^[3]

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• [1] Motion on corporation tax, House of Commons, 23 March 2004
• [2] Finance Act 2003, Section 133
• [3] Finance Act 2004, Section 26

Debate in Parliament | Historical Hansard | Source |