corporation tax

corporation tax
= CT
Tax charged on the total profits of a company resident in the UK arising in each accounting period The rate of corporation tax depends on the level of profits of the company. The small companies rate of 19% currently applies to companies with total profits of £300, 000 or less; since 2002 very small companies with total annual profits of £10, 000 or less pay no CT. Full-rate corporation tax of 30% applies to companies with total profits of over £1. 5 million. There is a marginal relief for those companies with total profits between £300, 000 and £1. 5 million or between £10, 000 and £50, 000. Large companies pay corporation tax in instalments: other companies pay CT nine months after the end of the company's chargeable accounting period.

Big dictionary of business and management. 2014.

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