Finance Act 2014 (c. 26)

PART 1 U.K. Income tax, corporation tax and capital gains tax

CHAPTER 1 U.K. Charge, rates etc

Corporation tax U.K.

5 Charge for financial year 2015 U.K.

Corporation tax is charged for the financial year 2015.

6 Small profits rate and fractions for financial year 2014 U.K.

(1) For the financial year 2014 the small profits rate is—

(a) 20% on profits of companies other than ring fence profits, and

(b) 19% on ring fence profits of companies.

(2) For the purposes of Part 3 of CTA 2010, for that year—

(a) the standard fraction is 1/400th, and

(b) the ring fence fraction is 11/400ths.

(3) In subsection (1) “ring fence profits” has the same meaning as in Part 8 of that Act (see section 276 of that Act).

7 Rates for ring fence profits and abolition of small profits rate for non-ring fence profits U.K.

Schedule 1—

(a) sets the corporation tax rates for ring fence profits for the financial year 2015 and future years, and

(b) contains provision about the abolition of the small profits rate for profits other than ring fence profits.