Corporation Tax UK - Taxation In The United Kingdom

The corporate tax is an income tax applied to corporation tax UK the United Kingdom on corporate earnings and profits of permanent establishments of companies resident outside the United Kingdom and associations that trade in the European Union. Before the adoption of the tax April 1, 1965, businesses and individuals pay the same income tax, a tax levied on benefits businesses.

The Finance Act 1965 replaced this structure to companies and associations corporation tax UK with a single corporate tax, which borrowed its basic structure and rules of the tax system on income. Since 1997, the Tax Law Rewrite the United Kingdom project was to modernize the tax legislation of the United Kingdom, the income tax, while the law imposes the tax income has been modified from each other, so that the rules governing corporation tax UK income tax and corporation tax diverged. The corporate tax rate is governed by the Law on Income and Corporation Taxes 1988 (as amended).

Originally introduced as a classical tax system, in which companies are subject to tax on profits and shareholders of companies corporation tax UK were also subject to income tax on dividends received, the first major change the corporate income tax was adopted an imputation system in 1973, in which a person who receives a dividend became entitled to a credit for income taxes represents the corporation tax paid by the company paying the dividends corporation tax UK.

The classical system was reintroduced in 1999, with the abolition of the tax corporation tax and refundable dividend credits. Another change is the main division of the flat tax in three. Tax competition between corporation tax UK jurisdictions reduces the main rate to 28%, with a further reduction of 26% compared to April 2011.