- corporation tax
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The tax charged on companies resident for tax purposes in the UK and foreign companies operating through a UK branch, tax is calculated as a percentage of taxable profit, i.e. taxable income less deductible expenses, reliefs and allowances. For the tax year 2000/1 the following rates apply: - profits up to ₤10,000 at 10% - a marginal rate of 22.5% is applied to profits between ₤10,000 and ₤50,000 - profits up to ₤300,000 at 20% - profits between ₤300,000 and ₤1.5m at a marginal rate of 32.5% - profits in excess of ₤1.5m at 30%
Easyform Glossary of Law Terms. — UK law terms.
- corporation tax
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a tax on the profit or gains of a company other than profits or gains made by it in a fiduciary capacity. Corporation tax is charged on both income and capital profits. Income profits are calculated on income tax principles while capital profits are calculated on capital gains tax principles.
Collins dictionary of law. W. J. Stewart. 2001.
- corporation tax
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A tax paid by companies on the profits of its business. The term profits includes all sources of income (other than dividends from UK companies) and chargeable gains. Companies resident in the UK are charged to corporation tax on the whole of their worldwide profits (subject to double taxation relief for foreign taxes). Companies that are not resident in the UK but which have UK source profits are charged to corporation tax on their UK source profits only if the company trades in the UK through a permanent establishment and the UK source profits are derived through that permanent establishment. A company usually pays corporation tax by reference to each accounting period. The rates of corporation tax are fixed for financial years which run from 1 April to 31 March. Companies pay corporation tax within nine months from the end of the relevant accounting period.Related links
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
