Part 6Income tax and corporation tax: charge and rate bands
Income tax
131Charge and rates for 2003-04
Income tax shall be charged for the year 2003-04, and for that year—
a
the starting rate shall be 10%;
b
the basic rate shall be 22%;
c
the higher rate shall be 40%.
132Indexed rate bands for 2003-04: PAYE deductions etc
For the year 2003-04, section 1(5A) of the Taxes Act 1988 (which provides that statutory inflation-linked changes to income tax rate bands for a year of assessment do not require changes to be made to PAYE deductions or repayments until 18th May in that year) shall have effect as if “
14th June”
”
were substituted for “17th May”.
Corporation tax
133Charge and main rate for financial year 2004
Corporation tax shall be charged for the financial year 2004 at the rate of 30%.
134Small companies' rate and fraction for financial year 2003
For the financial year 2003—
a
the small companies' rate shall be 19%, and
b
the fraction mentioned in section 13(2) of the Taxes Act 1988 (marginal relief for small companies) shall be 11/400ths.
135Corporation tax starting rate and fraction for financial year 2003
For the financial year 2003—
a
the corporation tax starting rate shall be 0%, and
b
the fraction mentioned in section 13AA of the Taxes Act 1988 (marginal relief for small companies) shall be 19/400ths.