Small companies pay price of Corporation Tax cuts

Despite Gordon Browns pledge to cut Corporation Tax from 30p to 28p, small companies will pay more, experts reveal.

The Corporation Tax rate for small companieswill rise from 19% to 22% from April 2008.

Paula Tallon, director and head of direct Tax at Chiltern, says: “Small companies are getting thumped again.

While headline Corporation Tax will go down, for smaller companies it is not good news, as the small companies rate is going up by 3%.

This unlikely to be neutralised by the reliefs announced.

Once again the less powerful are paying the price.”