BUDGET 2002: Start up tax cut to zero
The chancellor has announced the 10p tax rate for businesses earning £10,000 or less in profit will be cut to zero.
In addition the small companies tax rate, currently set at 20% will be cut to 19% with immediate effect.
Gordon Brown said this would make the UK the most favourable tax regime for small companies in any industrial country.
As expected, capital gains tax for business assets held for more than one year will be cut to 20%, and for business assets held for more than two years it will fall to 10%.