THE rate of Corporation Tax paid by small firms will be cut by a penny from 21p to 20p from April 1999, the Chancellor announced this afternoon.
He pledged that the small firms rate would stay at or below the 20p level for the remainder of this Parliament.
Larger companies will pay Corporation Tax in instalments under a new system. The higher rate will also be cut by a penny from to 30p from April 1999. Advanced Corporation Tax will be scrapped.