Search Legislation

Finance Act 2007

 Help about what version

What Version

 Help about advanced features

Advanced Features

 Help about opening options

Opening OptionsExpand opening options

Changes over time for: Section 3

 Help about opening options

Version Superseded: 01/04/2010

Alternative versions:

Status:

Point in time view as at 06/04/2009. This version of this provision has been superseded. Help about Status

Changes to legislation:

Finance Act 2007, Section 3 is up to date with all changes known to be in force on or before 03 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

3Small companies' rates and fractions for financial year 2007U.K.

(1)For the financial year 2007 the small companies' 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 financial year 2007 the fraction mentioned in section 13(2) of ICTA is—

(a)1/40th in relation to profits of companies other than ring fence profits (“the standard fraction”), and

(b)11/400ths in relation to ring fence profits of companies (“the ring fence fraction”).

(3)If—

(a)a company makes a claim under subsection (2) of section 13 of ICTA in respect of any accounting period any part of which falls in the financial year 2007, and

(b)its profits for that accounting period consist of both ring fence profits and other profits,

that subsection applies with the following modification.

(4)The corporation tax charged on its basic profits for that period is reduced by the aggregate of—

(a)the sum equal to the ring fence fraction of the ring fence amount, and

(b)the sum equal to the standard fraction of the remaining amount.

(5)For the purposes of subsection (4)(a) “the ring fence amount” is the amount given by the formula—

where—

MR is the sum equal to the appropriate fraction of the upper relevant maximum amount,

PR is so much of the profits for the accounting period as consist of ring fence profits, and

IR is so much of the basic profits for that period as consist of ring fence profits,

and the appropriate fraction is the fraction of the profits for the accounting period that consist of ring fence profits.

(6)For the purposes of subsection (4)(b) “the remaining amount” is the amount given by the formula—

where—

MNR is the sum equal to the appropriate fraction of the upper relevant maximum amount,

PNR is so much of the profits for the accounting period as do not consist of ring fence profits, and

INR is so much of the basic profits for that period as do not consist of ring fence profits,

and the appropriate fraction is the fraction of the profits for the accounting period that do not consist of ring fence profits.

(7)In this section “ring fence profits” has the same meaning as in Chapter 5 of Part 12 of ICTA (see section 502(1) and (1A)).

Modifications etc. (not altering text)

C1S. 3(3)-(7) applied (21.7.2008) by Finance Act 2008 (c. 9), s. 7(3)

Back to top

Options/Help