Budget 2009 Introduction Personal Income Tax Tax Credits National Insurance Contributions Employees Savings Capital Gains Tax Inheritance Tax Stamp Duty Land Tax Corporation Tax Business Tax Value Added Tax Other Measures Tax Tables National Insurance

Corporation Tax Rates of tax The rates of corporation tax remain 28% for companies with profits over £1.5m and 21% for companies with profits up to £300,000, with a marginal rate in between those levels of 29.75%. The calculations are more complex for associated companies or those which receive dividend income. The small companies rate was intended to rise to 22% on 1 April 2009, but (as announced in November) this increase has been deferred to 1 April 2010. Foreign dividends The Budget has confirmed the introduction of a package of reforms to the taxation of the foreign profits of UK corporate groups, including a tax exemption for most foreign dividends. There will be associated changes to restrict interest deductibility based on a worldwide debt cap, and also to the Controlled Foreign Companies rules.