 On its introduction in 1965, corporation tax was charged at 40 %, rising to 45 % in the 1969 Budget. The rate then fell to 42.5 % in the second Budget of 1970 and 40 % in 1971. In 1973, alongside the introduction of advance corporation tax (ACT), Conservative chancellor Anthony Barber created a main rate of 52 %, together with a smaller companies' rate of 42 %. This apparent increase was negated by the fact that under the ACT scheme, dividends were no longer subject to income tax.
