Finance Act, 1995

Chapter IV

Corporation Tax

Rate of corporation tax.

54.—(1) As respects any accounting period ending on or after the 1st day of April, 1995, section 1 (as amended by the Finance Act, 1990 ) 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) 40 per cent. for—

(i) each financial year until and including the year 1994, and

(ii) that part of the financial year 1995 beginning on the 1st day of January, 1995, and ending on the 31st day of March, 1995;

and

(b) 38 per cent. for—

(i) that part of the financial year beginning on the 1st day of April, 1995, and ending on the 31st day of December, 1995, and

(ii) each subsequent financial year.”.

(2) The Fourth Schedule shall have effect for the purpose of supplementing this section.