For some time, the smaller companies have enjoyed a lower rate of corporation tax than their larger counterparts. But all that is to change, as the Chancellor heralded a further cut in the main, ie larger company, corporation tax to 20 per cent from April 2015, in line with the lower rate. But there was no subsequent announcement that the small businesses rate would fall in line.
So, for the first time in three decades the main rate and the small company rate have been unified. While there might be some disappointment in the small business sector that their rate did not fall proportionately, there can be some solace that the unification was achieved by reducing the main rate rather than increasing the small company rate.
However, it was generally welcomed by the business sector as it gives the UK the lowest rate of corporation tax in the G20.
Shout99 will be continuting its focused coverage with analysis from experts of the issues in the Budget (and the more important ones behind the Chancellor's words) in our Political News.
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Susie Hughes © Shout99 2013