Marginal Rate of Tax

Dear All,

I am trying to get my head around marginal rate tax without much success.

Can someone, as succintly as possible, explain to me why the marginal rate of tax (32.5%) is higher than the full rate (30%) and how that comes to pass?

Isn't it a "mix" of small companies and full rate? So how does it become a higher rate than full rate.

Apologies if this is a stupid question, but I just cannot process it.

I look forward to a response,

thanks

chantelle x

 

Comments
There are 5 comments. Login or register to view them.

It's all in averages

Anonymous |

How I was taught

leestevens |

Or even mathematically....

Anonymous |

Corporation Tax marginal rates continued...

Pahl |
Pahl's picture

Stamp duty is an easier example

Old Greying Accountant |
Old Greying Accountant's picture