Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how many small companies received a reduced corporation tax rate in (a) 2015-16, (b) 2016-17 and (c) 2017-18.
Previously, a small profits rate applied to companies with profits under £300,000. In 2015, the Government unified the main rate of corporation tax and the small profits rate at 20%. Unification has delivered a simpler and less burdensome corporate tax regime. The corporation tax rate was then cut to 19% in 2017, benefitting over a million businesses, large and small, and is legislated to fall further to 17% in 2020.
There are different Corporation Tax rates for companies that make profits from oil extraction or oil rights in the UK or UK continental shelf. These are known as ‘ring fence’ companies. Fewer than ten companies claimed the Ring Fence Companies small profits rate in each of 2015-16 and 2016-17. Figures for 2017-18 are not yet available.