|
| |
| The rate of tax
depends on the total profits of the company, but marginal relief is
available where the profits fall within particular bands. The effective rate
of tax within the band is shown in the table. |
| |
|
|
|
|
| £0 - £10,000 |
0% |
|
0% |
| £10,001 - £50,000 |
19% |
19/400 x (50,000 -
P) |
23.75% |
| £50,001 - £300,000 |
19% |
|
19% |
| £300,001 - £1.5m |
30% |
11/400 x (1.5m - P) |
32.75% |
| over £1.5m |
30% |
|
30% |
|
| |
| The bands are
adjusted for associated companies and for accounting periods of less than 12
months. |
| |
| The minimum rate
on profits distributed after 31 March 2004 is 19%. |
| |
|
| |
Companies which do
not pay at the full rate (ie profits below £1.5m) settle their CT liability
9 months and a day after the end of the accounting period.
Large companies generally make payments on account of CT 6.5 months, 9.5
months, 12.5 months and 15.5 months after the start of a 12 month accounting
period, with interest running until final settlement of the period's
liability.
All companies file returns 12 months after the end of the period. |
| |
|
| |
| Companies are not
charged to CT on dividends received from other UK companies. Individuals and
trusts receive dividends with a 10% 'tax credit'. The dividend plus the tax
credit (100/90 of the amount received) is treated as taxable income, and the
10% tax credit settles some or all of the tax liability. But a taxpayer with
no liability cannot obtain a repayment of the tax credit from the Revenue -
it can only be used to settle liabilities. |
| |
|
| |
| From 1 April 2002,
trading companies do not pay tax on disposals of 'substantial
shareholdings', which are 10% holdings in other trading companies which have
been held for at least 12 months. |
| |
|
| |
| Companies can
receive a 20% tax credit for investment in new shares in qualifying
'corporate ventures'. Such companies must be owned at least 20% by
individuals, and the corporate investor must own not more than 30% to
qualify. |
