|
| 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
- £300,000 |
20% |
| over
£1.5m |
30% |
|
Marginal relief applies to profits between
£300,000 and £1.5m giving an effective
marginal rate of 32.5%.
The bands are adjusted for associated companies
and for accounting periods of less than 12 months.
From 1.4.2008 the main rate will decrease to 28%
and the small companies rate will increase to 21%.
The marginal rate will be 29.75%. |
| |
|
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. |
| |
|
| 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. |
