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Small companies' corporation tax

The Chancellor had previously announced that the small companies' rate of corporation tax would increase from 21% to 22 % from 1 April 2009. This increase will be deferred for one year until 1 April 2010. This is one of a number of measures to support small companies during the downturn. All companies with profits liable to corporation below £1.5 million will be affected except 'ring fence profits' from oil extraction which will continue to be taxed at 19 percent.