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Legal Terms - corporation tax
a charge on a UK-resident company's global profits. On April 6, 1966, corporation tax was introduced; prior to this, businesses were required to pay income tax and profits tax. Corporation tax is imposed on unincorporated associations, building societies, cooperative societies, unit trusts, and investment trusts in addition to corporations.
The company's profits (including capital gains) are subject to taxation based on the following calculations: (1) adding back certain nonallowable deductions (like depreciation and entertaining costs); (2) deducting losses from the previous year (or group); and (3) deducting any tax-specific allowances (like enhanced research and development allowances). These calculations are based on *generally accepted accounting practice. Corporation tax is currently paid in quarterly installments by larger businesses. Other businesses file their corporation taxes nine months following the conclusion of their chargeable accounting period.
a charge on a UK-resident company's global profits. On April 6, 1966, corporation tax was introduced; prior to this, businesses were required to pay income tax and profits tax. Corporation tax is imposed on unincorporated associations, building societies, cooperative societies, unit trusts, and investment trusts in addition to corporations.
The company's profits (including capital gains) are subject to taxation based on the following calculations: (1) adding back certain nonallowable deductions (like depreciation and entertaining costs); (2) deducting losses from the previous year (or group); and (3) deducting any tax-specific allowances (like enhanced research and development allowances). These calculations are based on *generally accepted accounting practice. Corporation tax is currently paid in quarterly installments by larger businesses. Other businesses file their corporation taxes nine months following the conclusion of their chargeable accounting period.
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