SMALL fleets have received a tax bonus from the Government, following the Chancellor of the Exchequer's decision to reduce the corporation tax starting rate from 10% to zero for companies with taxable profits below £10,000.

In addition, the small companies' rate is reduced from 20% to 19% for companies with taxable profits between £50,000 and £300,000.

Between these two thresholds, marginal tax relief will apply, easing the transition from the starting rate to the small companies' rate for companies with profits between £10,000 and £50,000.

To calculate the marginal relief available, the Inland Revenue has created the fraction 19/400. Marginal relief also applies to companies with profits of between £300,000 and £1,500,000. The fraction used in the calculation of this marginal relief will be 11/400.

The profits limits may be reduced for a company which is part of a group or has associated companies.