corporation tax


Also found in: Dictionary, Financial, Encyclopedia, Wikipedia.

corporation tax

a tax on the worldwide profits of UK resident companies and on the profits of non-resident companies from trading operations in the UK. Profits are measured for accounting periods and include both income and capital profits. In broad terms, income is measured using income tax principles and capital profits are calculated using capital gains tax principles but with INDEXATION ALLOWANCE instead of TAPER RELIEF. The rates of corporation tax vary according to the level of profits and are set for each FINANCIAL YEAR ending on 31 March with the accounting period profits apportioned where that period does not end on that date. Special rules apply to groups of companies to permit losses of one group member to be surrendered to another and for capital assets to pass within the group without triggering a disposal for CAPITAL GAINS TAX.
References in periodicals archive ?
Ann Bibby, tax partner at accountancy firm Mazars, said: "The original target announced by the coalition was to bring the corporation tax rate down from 28 per cent to 24 per cent in the term of this Parliament.
They also made losses of PS125million over the same period, wiping out their UK corporation tax bills.
The other subsidiary, Airbnb UK, reported a PS463,000 pre-tax profit with no corporation tax as it gave staff tax-deductible shares.
The OTS responds to calls for corporation tax to be modernised and simplified in its report Simplification of the Corporation Tax Computation published today 3 July 2017.
Unless Wales has powers over such factors as corporation tax it will become increasingly difficult to attract FDI.
However, in Britain we have cut corporation tax from its original punitive 40% to 28%, and now 20%.
From April, the company will end the practice of routing sales from major UK companies through Ireland, where they were liable to corporation tax at lower rates.
Facebook was widely criticised after paying just PS4,327 in UK corporation tax in 2014, while more than doubling its UK staff share bonus pot to PS35.
Lord Lawson, chancellor in Margaret Thatcher's governments between 1983 and 1989, told the newspaper: "It is profoundly unsatisfactory that corporation tax has to be collected from multinational corporations by a series of ad hoc compromise deals.
Two foreign investment banks in the UK are not paying any local corporation tax according to a recent revelation.
Britain's Corporation Tax rate might be competitive, but our business rates, a further, de facto tax on business, are the highest in the developed world.

Full browser ?