vat is the rate of corporation tax in uk.
vat is the rate of corporation tax in uk.
what is the rate of corporation tax in uk?
vat
prt is charged in addition to corporation tax, which is also payable by companies involved in oil exploration and production, although prt is deductible in calculating profits for corporation tax purposes. profits from oil extraction activities are subject to a corporation tax "ring fence", which means that profits from these activities cannot be reduced by any losses or other tax reliefs from other business activities (the corporation tax ring fence fences off the whole oil exploration trade, not individual fields like prt). profits within the corporation tax "ring fence" have been subject to a supplementary corporation tax charge of 10% in addition to the usual 30% rate since 17 april 2002. this supplementary charge was increased to 20% in the pre-budget report of december 2005, with effect from 1 january 2006, and was further increased in the 2011 budget to 32%, with effect from 23 march 2011. this means that the marginal tax rate on prt paying fields is now 81% (fields not paying prt pay a rate of 62%).
petroleum revenue tax
the basic structure of the tax, where company profits were taxed as profits, and dividend payments were then taxed as income, remained unchanged until 1973, when a partial imputation system was introduced for dividend payments. unlike the previous imputation system, the tax credit to the shareholder was less than the corporation tax paid (corporation tax was higher than the standard rate of income tax, but the imputation, or set-off, was only of standard rate tax). when companies made distributions, they also paid the advance corporation tax (known as act), which could be set off against the main corporation tax charge, subject to certain limits (the full amount of act paid could not be recovered if significantly large amounts of profits were distributed). individuals and companies who received a dividend from a uk company received a tax credit representing the act paid. individuals could set off the tax credit against their income tax liability.
united kingdom corporation tax