text_body: --- DIVISION TITLE ---
  
  Corporation tax (small companies' rates and fractions for financial year 2008)
  
  --- MOTION EFFECT ---
  
  
  
  
  
  
  
  
  The majority Aye voters passed a motion[1] which set the small companies' corporation tax rate for the 2008/09 financial year. This rate was set at 21% and increased by 1% from the previous year.
  
  Corporation tax is, very simply, a tax on the profits of a company resident in the UK. There is a main rate of corporation tax which applies to companies with profits of over Â£1.5 million per year (this was set at 28% in 2008/09 - down from 30% in the previous year). Companies qualify for the lower rate when their profits are at or below Â£300,000 per year.[2]
  
  Companies with profits between Â£300,000 and Â£1.5 million qualify for [http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1083649261 Marginal Small Companies Relief (MSCR)]. The relief that companies qualify for is decided by a MSCR fraction which is also set by parliament (and was voted on in this division).
  
  Both the Conservatives and Liberal Democrats voted against this small companies' corporation tax rate. The Tories probably voted this way because they believe corporation tax should be lower[3].
  
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  * [1] [http://www.theyworkforyou.com/debate/?id=2008-03-18b.858.3 Motion on corporation tax], House of Commons, 18 March 2008
  * [2] [http://www.hmrc.gov.uk/rates/corp.htm HMRC Corporation tax rates]
  * [3] [http://news.bbc.co.uk/1/hi/uk_politics/7285874.stm Tories urge corporation tax cut], BBC News, 9 March 2008 
  
  
  --- COMMENTS AND NOTES ---
  
  (put thoughts and notes for other researchers here)
  