United Kingdom corporation tax
Introduction of a Wikipedia article.
Complete article: http://en.wikipedia.org/wiki/United_Kingdom_corporation_tax


Corporation tax is a tax levied in the United Kingdom on the profits made by companies and on the profits of permanent es of non-UK resident companies and associations that trade in the EU. Pr to the tax's enactment on 1 April 1965, companies and individuals paid the sa inco tax, with an additional profits tax levied on companies. The Fin Act 1965 replaced th structure for comp and associations with a si corp tax, which borrowed its ba structure and rules from the income tax syst Since 1997, the UK's Tax Law Rewrite Project has been modern the UK's tax legislation, starting wi inco tax, wh the legislation imp corporation tax has itse be amended; the rul governing income tax and corporation tax have thus diverg Corporation tax is governed by the Inco and Corporation Ta Act 19 Originally intro as a classical tax system, in which com were subject to tax on the profits and companies' shareholders were al liable to income tax on the dividends that th received, the fi major amendment to corporation tax saw it move to an imputa syst in 197 un which an indivi receiving a dividend beca entitled to an income tax credit representing the corporation tax already paid by the co paying the divi The classical system was reintroduced in 1999, with the abolition of advance corporation tax and of repayable dividend tax credits. Anot change saw the single ma rate of tax sp in three. Tax compet between jurisdic has reduced the main ra to 30%, and the ma rate is planned to reduce to 28% from April 20 The UK government has fac proble wi its corporate tax st including European Court of Justice judgements that aspects of it are incom with European Un treat Tax avoidance schemes market by the financial sector ha also prov an irritant, and been countered by complicated anti-av legislation. The comp of the corpor tax system is a recognised issue. The Labour government, su by the Opposition parties, has expressed its commitment to wide-scale reform. The tax has slowly been integrating general accepted accou practice, with the corporati tax sys in various specific areas based directly on the acco treatment. Corporation tax is the next area scheduled to be ta by the Tax Law Rewri project, with a draft Bi due.


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