Finance Act, 1988

Chapter IV

Corporation Tax

Rates of corporation tax.

33.—(1) As respects any accounting period ending on or after the 1st day of April, 1988, section 1 of the Corporation Tax Act, 1976 , is hereby amended by the substitution of the following subsection for subsection (1):

“(1) For the financial year 1974 and each subsequent financial year there shall be charged on profits of companies a tax, to be called corporation tax, at the rate of—

(a) 50 per cent. for—

(i) each financial year until and including the year 1987, and

(ii) that part of the financial year 1988 beginning on the 1st day of January, 1988, and ending on the 31st day of March, 1988;

(b) 47 per cent. for—

(i) that part of the financial year 1988 beginning on the 1st day of April, 1988, and ending on the 31st day of December, 1988, and

(ii) that part of the financial year 1989 beginning on the 1st day of January, 1989, and ending on the 31st day of March, 1989;

and

(c) 43 per cent. for—

(i) that part of the financial year 1989 beginning on the 1st day of April, 1989, and ending on the 31st day of December, 1989, and

(ii) each subsequent financial year.”.

(2) Sections 28 and 79 of the Corporation Tax Act, 1976 , shall not have effect for any accounting period ending on or after the 1st day of April, 1989.

(3) The Third Schedule shall have effect for the purpose of supplementing this section.