The 19 per cent. non-corporate distribution rate and the 0 per cent. starting rate of corporation tax have been replaced by a new single banding for small company profits, set at the current small companies’ rate of 19 per cent.
For 2006-07 the mean average annual amount of additional tax expected to be paid following this change is:
(a) £690 (median £475) by 720,000 companies affected;
(b) £665 (median £450) by the 370,000 companies within this total which make annual profits up to £10,000.