Advance Corporation Tax (ACT) was a system used in the United Kingdom where corporations made advance payments on their corporation tax liabilities when distributions, such as dividends, were made. ACT was abolished on April 6, 1999.
In the UK, the basic rate of income tax is the lower band of income tax rates, currently set at 20%. This rate applies to the first £32,000 of taxable income for the 2016-2017 tax year.
Corporation Tax (CT) is a tax charged on the total profits of a company resident in the UK during each accounting period. The rate of corporation tax varies depending on the level of profits of the company.
A comprehensive guide to understanding the Dividend Tax in the UK, which was introduced in April 2016 to replace the previous tax credit system.
A fundamental principle of UK income tax and corporation tax whereby expenditures that have a dual purpose are not deductible in computing profits subject to tax unless they can be dissected to identify wholly business-related expenses.
Enterprise Management Incentives (EMIs) are a type of employee stock option scheme that provides tax advantages to both employees and employers in the United Kingdom.
A duty or tax levied on certain goods consumed within a country, such as alcoholic drinks and tobacco products, unlike customs duty which is levied on imports.
A concession made by HM Revenue and Customs (HMRC) to taxpayers, usually followed in practice but not specified in the tax legislation.
In the UK, a special capital allowance against corporation tax that is granted in the year of purchase of an asset in place of the standard writing-down allowance of 25%.
Foreign emoluments refer to earnings received by a person domiciled outside the UK from employment with a non-resident employer.
A measure designed to counter tax avoidance in the UK by outlawing any arrangement that creates a tax advantage through means judged 'artificial and abusive.' The rule evaluates the reasonableness of the arrangements.
HM Revenue and Customs (HMRC) is the UK government department responsible for the care, management, and collection of direct and indirect taxes, National Insurance contributions, and customs and excise duties within the UK. It was established from a merger of the Board of Inland Revenue and the Board of Customs and Excise in April 2005.
Inheritance Tax (IHT) is a tax introduced in the Budget of 1986, charged on the estate of a deceased individual domiciled in the UK or on UK property owned by a non-domiciled individual. It applies retrospectively on certain lifetime gifts and includes exemptions and potential allowances.
In the UK, Landfill Tax is a charge on the commercial disposal of waste by way of landfill. As of the financial year 2016-2017, the standard rate is £84.40 per tonne, with a rate of £2.65 per tonne for 'less-polluting waste' (chiefly naturally occurring materials).
National Insurance Contributions (NICs) are payments made by those with earned income that contribute to the National Insurance Fund, from which various benefits are disbursed including retirement pensions, jobseeker’s allowance, and more.
An overview of the personal allowance entitlement for individual residents in the UK for calculating their taxable income for income tax purposes.
Petroleum Revenue Tax (PRT) is a tax levied on the profits made from the extraction of oil and gas in the UK continental shelf. It was introduced to ensure fair taxation on profits from oil and gas extraction.
A basis for assessing profits where the assessment in any given fiscal year is based on the accounts that ended during the previous tax year. In the UK, the PYB was replaced by the current-year basis of assessment from 1997--98 onwards.
A resident is an individual or company that is considered to be based in the UK for taxation purposes, determined by specific criteria set by HM Revenue and Customs (HMRC).
Stamp Duty Land Tax (SDLT) is a tax charged on the purchase price of property or land in the UK. The rates and thresholds vary depending on several factors such as property value, type, and buyer's status.
A tax levied on the transaction when a shareholding is transferred without a document, or when the document is kept outside the UK. It is a key aspect of modern, electronic, and paperless share transactions on UK exchanges.
Surplus Advance Corporation Tax (ACT) refers to the excess amount of advance corporation tax paid within an accounting period that surpassed the maximum amount allowable for set-off against gross corporation tax. This taxation mechanism was abolished effective 1 April 1999.
Writing-down allowance (WDA) is a type of capital allowance available to UK traders, allowing the reduction in value of certain assets over time for tax purposes.
