Small companies rate
The planned increase in the small companies' rate (SCR) from 21% to
22% from 1 April 2009 has been deferred for one year. This will apply to
all profits other than ring fence profits, which will continue to be
taxed at 19%.
Small companies are broadly those with profits of less than £300,000.
Our view
This is a welcome but limited change which will delay the increased tax
burden on small companies. This will now come into force on 1 April 2010.