query: what is the rate of corporation tax in uk

pos: United Kingdom corporation tax which an individual receiving a dividend became entitled to an income tax credit representing the corporation tax already paid by the company paying the dividend. The classical system was reintroduced in 1999, with the abolition of advance corporation tax and of repayable dividend tax credits. Another change saw the single main rate of tax split into three. Tax competition between jurisdictions reduced the main corporate tax rate from 28% in 2008-2010 to a flat rate of 20% as of April 2015. The UK government faced problems with its corporate tax structure, including European Court of Justice judgements that aspects of

pos: Dividend cents per dollar of dividend. The shareholders who are able to use them, apply these credits against their income tax bills at a rate of a dollar per credit, thereby effectively eliminating the double taxation of company profits. Dividends from UK companies are paid out of profits after corporation tax (Corporation tax is at 20% but decreases to 19% from 1 April 2017 - split periods are pro-rated). Dividend income is taxable on UK residents at the rate of 7.5% for basic rate payers, 32.5% for higher rate tax payers and 38.1% for additional rate payers. The income tax on

pos: Foreign tax credit for credit is generally reduced. For example, US tax law requires individuals to reduce the foreign income tax by the ratio of the rate differential on dividends (39.6% less 20%) to the maximum individual tax rate (39.6%). Some countries have at times allowed shareholders a credit against the shareholder's tax for taxes paid by the corporations. Several countries allow corporations who own significant shares of other corporations to claim a foreign tax credit for a portion of the foreign income taxes paid by the owned corporation when the shareholding corporation receives a dividend. Assume that Carpet Ltd is a UK

pos: Institute for Public Policy Research to be paid at least 20% above the higher rate, an industrial strategy boosting exports, with a new national investment bank raising £15bn a year to get public investment to 3.5% of GDP (the G7 average), large changes to government of UK companies including workers on company boards, raising the headline rate of corporation tax and a minimum corporation tax rate to fight tax avoidance by multinationals and a single income tax for all types of incomes. Currently the poorest 20% pay 35% of their incomes in tax, a higher proportion than any other income groups. Institute for Public Policy

pos: Stormont House Agreement during talks brokered by Richard Haass and Professor Meghan O'Sullivan. These talks began in September 2013, and broke up on 31 December of that year without agreement. Several other ongoing political contentions were also resolved by the Stormont House Agreement. These include the devolution of Corporation Tax to Northern Ireland. Within Northern Ireland there has been an all-party consensus on the need to devolve corporation tax to allow the Province to compete for business with the Republic of Ireland. This is because the Republic of Ireland's rate of tax is 12.5%, considerably lower than the UK rate of 20%, which

pos: Criticism of Starbucks coffee roasting plant was the reason for the decision. Until 2009, the royalty rate was 6% of UK sales, but after being challenged by UK tax authorities it was reduced to 4.7%. The CFO told the committee this reflected costs such as designing new stores and products, but admitted that there was no detailed analysis by which the rate is decided. The coffee they serve in the UK is purchased from the Swiss subsidiary, which charges a 20% markup on the wholesale price and pays 12% corporation tax on profits. Coffee is not transported to Switzerland but the 30 people

pos: 2013 United Kingdom budget to earn before income tax is levied was increased for the third consecutive budget, to £10,000, from 2014. The increase had been planned to become effective in 2015 but was brought forward one year. Before the 2012 budget, the rate of corporation tax in the UK was 26%. In his 2013 budget, Osborne announced another reduction in the rate in 2015 to 20%. The reductions would be offset by the bank levy. New employment allowances will cut National Insurance bills for all UK firms, and 450,000 small businesses should pay no employer NI. Tax reliefs were also announced for investment

pos: Corporation tax in the Republic of Ireland UK multinationals "re-domiciled" to Ireland: WPP plc, United Busines Media plc, Henderson Group plc, Shire plc and Charter (Engineering) plc. Unlike the U.S. tax-code, the UK tax-code did not require the inversion to be executed by way of an acquisition of an Irish–based corporate who was at least 20% of the merged group. However, in 2009, the UK Labour government switched to a "territorial tax" system, and over 2009 to 2012, the UK Conservative government introduced a number of other corporate tax reforms including reduction of the UK headline CT rate to 20%, creation of new BEPS tools (e.g. a

pos: Economy of Jersey licences granted to non-resident companies trading in this way. The States of Jersey introduced a goods and services tax (GST) in 2008. Although this is a form of VAT, it has been charged at a much lower rate than UK or French VAT, and as such Jersey's fulfilment industry continues. The strategy for introducing the new GST tax was to fill a 'black hole' in the budget that was created by the introduction of a new 0/10 tax that replaced the old tax system that previously exempted foreign investors from corporation tax and levied a 20% rate on Jersey residents.

pos: Life insurance year a gain is made. All UK insurers pay a special rate of corporation tax on the profits from their life book; this is deemed as meeting the lower rate (20% in 2005–06) of liability for policyholders. Therefore, a policyholder who is a higher-rate taxpayer (40% in 2005-06), or becomes one through the transaction, must pay tax on the gain at the difference between the higher and the lower rate. This gain is reduced by applying a calculation called top-slicing based on the number of years the policy has been held. Although this is complicated, the taxation of life assurance-based

pos: George Osborne lower corporation tax to "encourage businesses to continue investing in the UK". Osborne had already cut the corporation tax rate from 28% to 20%, with plans to lower it to 17% by 2020. The "Financial Times" describes Osborne as "metropolitan and socially liberal. He is hawkish on foreign policy with links to Washington neo-conservatives and ideologically committed to cutting the state. A pragmatic Eurosceptic". There is evidence of this commitment to cutting the state in his party's manifesto, with Osborne and the Conservatives seeking to cut the deficit "faster and deeper" than any other main party as well as committing

pos: Finance Act of a property valued at 25% above the national average. This Act of 27 July 2010 under the Coalition Government reduced the headline rate of Capital Gains Tax to 18%. The Act increased the general rate of VAT from 17.5% to 20% (while cutting it for imported goods and materials from to 28.58% to 25%). Enacted on 16 December 2010 this Act extended foster care relief, extended the applicability of venture capital schemes to companies with a "permanent establishment" in the UK "in financial health", modified the meaning of "distribution" in the Corporation Tax Acts, addressed the income tax treatment

pos: Guernsey Sark each raise their own taxation, although in 1949 Alderney (but not Sark) transferred its fiscal rights to Guernsey. Personal tax liability differs according to whether an individual is resident in the island or not. Individuals resident in the Jurisdiction of Guernsey (which does not include Sark) pay income tax at the rate of 20% on their worldwide income, whereas non-residents are only liable on income arising from activity or ownership within Guernsey. Unlike in the UK, the income tax year in Guernsey aligns to the calendar year. Since 2008, Guernsey has operated three levels of corporation tax, depending on

pos: Petroleum Revenue Tax 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%). PRT is administered by the Energy Group of the Large Business Service of HM

pos: United Kingdom corporation tax charities are also normally deducted in calculating taxable income if made under Gift Aid. The 2007 Budget announced a main rate cut from 30% to 28%, effective from April 2008. At the same time, the small companies' rate was increased from 19% to 20% from April 2007, 21% in April 2008, to stop "individuals artificially incorporating as small companies to avoid paying their due share of tax, a practice if left unaddressed would cost the rest of the taxpaying population billions of pounds". The rate of corporation tax is determined by the financial year, which runs from 1 April to

pos: BT MyDonate Research UK, Changing Faces, KidsOut, NSPCC and Women's Aid. BT MyDonate is currently available to UK charities in England, Wales, Scotland and Northern Ireland only. However, anyone outside of the UK can make a donation using BT MyDonate although BT will only be able to claim Gift Aid on the charity's behalf if they pay tax in the UK. In the UK, donations by individuals are treated as being given after the deduction of income tax at the basic rate (20% in 2011), and charities can reclaim the basic rate income tax paid on the gift from HMRC via Gift

pos: Advance corporation tax entitled to a refund of the ACT amount. When introduced in 1973, the ACT rate on the gross dividend (the amount distributed plus the ACT withheld) was 30%, the basic rate of income tax at the time. Until 1993 the income tax rate payable on dividends was the same as all other income, and the ACT rate was adjusted to align it to changes in the basic rate of income tax. From April 1993, the ACT rate was cut to 22.5% while the tax rate on dividend income was set at 20%, the first time it was set at a

pos: Self-invested personal pension tax year 2016-17) on behalf of the customer (i.e. you pay £2,880 and your fund contribution for the year will become £3,600). The 20% is usually added to the 'pot' some 6–11 weeks after your payment is made. Higher rate and additional rate taxpayers must claim any additional tax refund through their tax return if they have one, or by otherwise contacting HMRC (being a higher rate taxpayer, being self-employed or having paid too much tax, are all triggers for being requested to complete a tax return). Employer contributions are usually allowable against corporation tax or income tax. Income from

pos: Tax code (PAYE) at a basic rate of 20%, or the tax allowance can be split across both sources of income. Non-standard codes are used when usual tax free allowances do not apply. Where no allowances exist, code BR is used to tax at basic rate (20%), and code D0 is used to tax at higher rate (40%). If no tax is to be collected, code NT is used. If tax has to be collected on an income above PAYE earnings, a K code is used. This works as equivalent to a negative tax allowance. Tax code (PAYE) In the UK, every person

pos: Dividend tax is subject to tax in the hands of an individual tax payer at the applicable marginal tax rate. Therefore, dividends are taxed at up to 20% if received from a corporation that is subject to tax and up to 40% if received from a corporation that does not satisfy the "subject to tax" test. In the Netherlands there's a tax of 1.2% per year on the value of the share, regardless of the dividend, as part of the flat tax on savings and investments. Major shareholders (over 5%) are subject to a 25% dividend tax, they can deduct the 1.2%

pos: United Kingdom corporation tax described above falling to £1.2 m, a fall in income of 20%, because no tax would be reclaimable. From 6 April 1999 ACT was abolished, and the tax credit on dividends was reduced to 10%. There was a matching reduction in the basic income tax rate on dividends to 10%, while a new higher-rate of 32.5% was introduced which led to an overall effective 25% tax rate for higher rate taxpayers on dividends (after setting this "notional" tax credit against the tax liability).While non-taxpayers were no longer able to claim this amount from the treasury (as opposed to taxpayers who

pos: Payroll giving have to choose which agency to operate with and may not pay the charities directly. Payroll Giving is promoted within workplaces by a number of Professional Fundraising Organisations or charities The UK has a progressive Income Tax system with a top rate in 2015 of 45%. For higher rate tax payers this is a simpler way to donate to charity tax effectively than Gift Aid, as Gift Aid assumes all donations are from Basic rate Taxpayers (20% rate). It is nonetheless possible to achieve the same result using Gift Aid, regardless of which tax band the donor is in, because

neg: Corporation tax in the Republic of Ireland overhauled its tax code, there have been no inversions of UK firms to Ireland; of the 3 main UK–controlled firms in Ireland (see "Table 1"): While national tax policy is excluded from EU treaties, the EU has challenged Ireland's tax code under State-aid legislation. Seamus Coffey's 2016 "Review of Ireland's Corporation Tax Code" chronicled how the EU withdrew the exemption from State-aid rules for Ireland's special tax rate of 10% in 1996–1998, however, Ireland countered the EU withdrawal by lowering the entire Irish standard rate of corporate tax from 40% to 12.5% over 1996–2003 (see ). In October 1994, the

neg: Tax avoidance 2016-17 was £1.7 billion, of which £0.7 billion was loss of income tax, National Insurance contributions and Capital Gains Tax. The rest came from loss of Corporation Tax, VAT and other direct taxes. This compares to the wider tax gap (the difference between the amount of tax that should, in theory, be collected by HMRC, against what is actually collected) in that year of £33 billion. Figures published by the Tax Justice Network show that the UK had one of the lowest rates of tax losses due to profit shifting by multinational companies, with the fourth lowest rate out of

neg: United Kingdom corporation tax profits chargeable to tax at the standard shareholder rate applicable to that company. Separate rules apply for dual resident companies. Full group relief is permitted between companies subject to UK corporation tax that are in the same 75% group, where companies have a common ultimate parent, and at least 75% of the shares in each company (other than the ultimate parent) are owned by other companies in the group. The companies making up a 75% group do not all need to be UK-resident or subject to UK corporation tax relief. An open-ended investment company cannot form part of a group.

neg: Corporate tax in the United States These include: Determinations of what is taxable and at what rate are made at the federal level based on U.S. tax law. Many but not all states incorporate federal law principles in their tax laws to some extent. Federal taxable income equals gross income (gross receipts and other income less cost of goods sold) less tax deductions. Gross income of a corporation and business deductions are determined in much the same manner as for individuals. All income of a corporation is subject to the same federal tax rate. However, corporations may reduce other federal taxable income by a net capital

neg: Feargal O'Rourke Grand Canyon", in the BEA analysis of Ireland's ETR. The disconnect lies in the distinction between Ireland's corporation tax "regime" versus Ireland's corporation tax "rate", which was highlighted by the EU Commission's 2016 findings against Apple's double Irish tax system in Ireland. According to the Irish Revenue, Apple had being paying the full Irish 12.5% tax rate on what Revenue considered to be "taxable profits" in Ireland The EU Commission found a very different situation: Experts note the potency of Ireland's "corporation tax regime", and O'Rourke's BEPS tools, as opposed to the "headline" 12.5% corporate tax rate. The Irish ETRs

neg: Patent box Patent Box initiative is complementary to the R&D tax incentives which encourage companies to "undertake" their R&D in the UKhb The Patent Box allows a 10% tax rate on profits derived from any products that incorporate patents. The net benefit for claiming companies is likely to be several percentage points of their corporate earnings, given that the main rate of UK corporation tax is 20 per cent. The steady state cost, after the initial phasing- in period, of the Patent Box is forecast to be approximately £1.1 billion in terms of corporation tax revenues foregone by HM Treasury. The claim

neg: Apple Inc. billions of pounds of profit in the UK, but were paying an effective tax rate to the UK Treasury of only 3 percent, well below standard corporation tax. He followed this research by calling on the Chancellor of the Exchequer George Osborne to force these multinationals, which also included Google and The Coca-Cola Company, to state the effective rate of tax they pay on their UK revenues. Elphicke also said that government contracts should be withheld from multinationals who do not pay their fair share of UK tax. Apple Inc. claims to be the single largest taxpayer to the Department

neg: History of the Conservative Party (UK) Steel Corporation in 1988. In 1984, Thatcher also successfully concluded five-year-long negotiations over Britain's budget to the European Economic Community. ("See UK rebate".) In 1989, the Community Charge (frequently referred to as the "poll tax") was introduced to replace the ancient system of rates (based on property values) which funded local government. This unpopular new charge was a flat rate per adult no matter what their circumstances; it seemed to be shifting the tax burden disproportionately onto the poor. Once again Thatcher's popularity sagged, but this time the Conservatives thought it might cost them the election. Michael Heseltine, a former

neg: Corporation tax in the Republic of Ireland tax" systems make little use of corporate–tax havens, as their tax code applied lower rates to foreign-sourced profits. Hines, with German tax academics, showed the German tax code charged a CT rate of 5% to the foreign profits of German multinationals. Hines was one of the most-cited sources when the U.S. Council of Economic Advisors advocated switching the U.S. tax code to a "territorial system" in the Tax Cuts and Jobs Act of 2017. In 2014, the U.S Tax Foundation, reported on how the UK had effectively stopped UK corporates inverting to Ireland, by switching the UK corporate tax-code to

neg: International taxation application of complex attribution of ownership rules) of a foreign corporation. Such persons may include individuals, corporations, partnerships, trusts, estates, and other juridical persons. A CFC is a foreign corporation more than 50% owned by U.S. shareholders. This income includes several categories of portable income, including most investment income, certain resale income, and certain services income. Certain exceptions apply, including the exclusion from Subpart F income of CFC income subject to an effective foreign tax rate of 90% or more of the top U.S. tax rate. The United Kingdom provides that a UK company is taxed currently on the income

neg: Corporation tax in the Republic of Ireland December 2017 with the passing of the Tax Cuts and Jobs Act (TCJA) by the Trump administration. Parts of the TCJA are specifically targeted at Irish BEPS tools as used by U.S. multinationals in Ireland. The TCJA introduces many of the changes that the UK made to its tax code in 2009-2012, including moving to a "territorial tax" system and reduction of headline rate of tax; the UK changes reversed many of the UK corporate tax inversions to Ireland. However the TCJA goes even further and the GILTI–FDII–BEAT tax regime are a more severe "carrot and stick" to encourage U.S.

neg: Tax inversion corporations have executed inversions, most notably UK corporations to Ireland. Shire plc's 2008 Irish inversion, led to changes in UK tax law, including a full "territorial tax" system, that turned the UK into an inversion destination. The driver has usually been the high US 35% corporation tax rate on worldwide income (one of the highest rates in the world). At the same time low-tax locations like Ireland, the most popular destination for US inversions, have advanced IP-based BEPS tools and Debt-based BEPS tools, that give Irish effective tax rates of 0-3%. Although inverting companies are colloquially said to "change" their

neg: Unrelated Business Income Tax a retirement account investor is seeking to invest retirement funds into a business operated through a LLC, she can establish a C Corporation, invest her IRA funds through the C Corporation, and then have the C Corporation invest the funds into the business LLC. All income received by the C Corporation would be subject to the new reduced corporate tax rate of 21%, which is less than the 37% maximum UBIT tax rate and less than the old maximum corporate tax rate of 35%. Since at least 1928, tax-exempt organizations could earn tax-free income from both mission-related activities and commercial

neg: Tobin tax unrealistic assumption that the rate of 0.00006% causes no reduction of trading volume, the tax on foreign currency exchange transactions would yield just $4.3 billion a year, despite an annual turnover in dozens of trillion dollars." Accordingly, one of the modern Tobin tax versions, called the "Sterling Stamp Duty", sponsored by certain UK charities, has a rate of 0.005% "in order to avoid market distortions", i.e., 1/100 of what Tobin himself envisaged in 2001. Sterling Stamp Duty supporters argue that this tax rate would not adversely affect currency markets and could still raise large sums of money. The same rate

neg: Tax inversion however, this is a definition omits income that would be considered taxable under the US Bureau of Economic Analysis ("BEA") method of assessing "effective" taxation. Under the BEA definition, Ireland's "effective" 2015 corporation tax rate is 2.5%. Ireland further upgraded its holding company regime (to minimize pass-through taxes), and introduced the first OECD compliant "Knowledge Development Box" ("KDB") with a 6.5% rate. Ireland then experienced a boom in much larger US corporate inversions, and particularly from the Pharmaceutical industry (see last 5 years): As well as the 3rd largest recipient of US corporate inversions, the UK is the most interesting

neg: Corporation tax in France €3 billion the rate will be 43.3 %. In 2012 a new tax credit was introduced to make France more competitive. Companies get a tax credit of 7% of total wage & salary costs up to a limit of 2.5 times the minimum salary (in 2017 the minimum salary was €1,460). The effect is to substantially reduce the effective rate of corporation tax. The tax credit amounts to 19 billion euros (about 40% of gross corporate tax take). Certain items of income are exempt from corporate tax: Corporation tax in France Corporate tax in France deals with the tax payable

neg: Tax rates in Europe Tax rates in Europe This is a list of the maximum potential tax rates around Europe for certain income brackets. It is focused on three types of taxes: corporate, individual, and value added taxes (VAT). It is not intended to represent the true tax burden to either the corporation or the individual in the listed country. The quoted income tax rate is, except where noted, the top rate of tax: most jurisdictions have lower rate of taxes for low levels of income. Some countries also have lower rates of corporation tax for smaller companies. In 1980, the top rates of

neg: Canada small business tax rate Canada small business tax rate In Canada, the small business tax rate is the tax rate paid by a small business. As of 2018, the small business tax rate is 10%. A small business in Canada is defined as a Canadian-based corporation with less than 100 employees and under $500,000 in annual income. The general corporate tax rate is 28%. Small businesses are allowed to claim a "small business deduction" under the "Income Tax Act"; the deduction enumerated in that Act is deducted from the 28% general tax rate and means the net small business tax rate is as follows:

neg: Canada small business tax rate Canada small business tax rate In Canada, the small business tax rate is the tax rate paid by a small business. As of 2018, the small business tax rate is 10%. A small business in Canada is defined as a Canadian-based corporation with less than 100 employees and under $500,000 in annual income. The general corporate tax rate is 28%. Small businesses are allowed to claim a "small business deduction" under the "Income Tax Act"; the deduction enumerated in that Act is deducted from the 28% general tax rate and means the net small business tax rate is as follows:

neg: Dividend tax in the taxation of one's gross income, though varying from one stock to another, there is a specific deduction rate to the gross income tax if one holds this corresponding stock on the in-dividend date (once per year). Beginning from January 2013, there will be an additional 2% "tax" on all dividends, serving as the supplemental premium for the second-generation National Health Insurance (NHI) of Taiwan. In Turkey there is an income tax withholding of 15% on dividends. In the United Kingdom, companies pay UK corporation tax on their profits and the remainder can be paid to shareholders as dividends.

neg: Uranium Participation Corporation also not impacted by the Eurogroup bailout of Cyprus. The substantively enacted future tax rates, in UPC’s various jurisdictions, range from 3.0% to 26.5%. In fiscal 2013, the Corporation incurred current tax recoveries of $13,000 and future tax recoveries of $3,021,000. The combined tax recoveries for the current year of $3,034,000 reflects an effective tax rate of approximately 3.1% compared to tax recoveries of $18,997,000 and an effective tax rate of 7.8% in the prior year. The decline in the effective tax rate is primarily a result of an increase in the proportion of deductible temporary differences arising in the

neg: Foreign tax credit resident company publicly traded company which buys and sells carpets through offices in UK and Germany. Carpet Ltd's tax rate in the UK is 33% on its business net income of £1 million. Carpet Ltd is also subject to tax in Germany on the equivalent of £100,000 at a tax rate of 37%, or £37,000. The UK limits FTC to the amount of UK tax that would be on the foreign (non-UK) source income. If Carpet Ltd has no other foreign source income under UK concepts, Carpet Ltd's UK tax is £330,000 less FTC of £33,000, or £297,000. Total taxes

neg: Taxation in Germany tax (averaging 14% as of 2008), tax on corporations in Germany is just below 30%. The assessment base for the corporation tax charged is the revenue which the corporate enterprise has earned during the calendar year. Taxable profits are determined using the result posted in the annual accounts (balance sheet and Income statement) drawn up under the Commercial Code. What is deemed income under tax law sometimes diverges from the way earnings are determined under commercial law, in which case tax law provisions prevail. When dividends are paid to an individual person, capital yield tax at a rate of 25%

neg: Double Irish arrangement a "worldwide" system to a "territorial" system in 2009-2012, which led to a reversal of many UK inversions to Ireland, and turned the U.K. into one of the leading destinations for U.S. corporate tax inversions (although Ireland is still the most popular). A similar case study was cited in the switch by Japan in 2009 from a full U.S. "worldwide" tax system (e.g. very high domestic tax rate, partially mitigated by a "controlled foreign corporation" regime), to a full "territorial" tax system, with positive results. As discussed in , Hines had shown as early as 1994, that under the U.S.

neg: United Kingdom corporation tax the starting rate to zero, with marginal relief applying in the same way. This caused a significant increase in the number of companies being incorporated, as businesses that had operated as self-employed, paying income tax on profits from just over £5,000, were attracted to the corporation tax rate of 0% on income up to £10,000. Previously self-employed individuals could now distribute profits as dividend payments rather than salaries. For companies with profits under £50,000 the corporation tax rate varied between 0% and 19%. Because dividend payments come with a basic rate tax credit, provided the recipient did not earn more

neg: United Kingdom corporation tax 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

neg: United Kingdom corporation tax tax computation. Credit relief is given as a deduction from the UK tax liability, but is restricted to the amount of UK tax suffered on the foreign income. There is a system of onshore pooling, so that overseas tax suffered in high tax territories may be set off against taxable income arising from low tax territories. From 1 July 2009, new rules were introduced to exempt most non-UK dividends from corporation tax so these double taxation rules in respect of non-UK dividends will be of less common application in practice after that date. Detailed and separate rules apply to how

neg: Guinness will be closed by 2013 when a new larger brewery is opened near Dublin. The result will be a loss of roughly 250 jobs across the entire Diageo/Guinness workforce in Ireland. Two days later, the "Sunday Independent" again reported that Diageo chiefs had met with Tánaiste Mary Coughlan, the deputy leader of the Government of Ireland, about moving operations to Ireland from the UK to benefit from its lower corporation tax rates. Several UK firms have made the move in order to pay Ireland's 12.5 per cent rate rather than the UK's 28 per cent rate. Diageo released a statement

neg: PCTCT accounts, with the addition of any disallowed expenditure, and the deduction of any expenditure that is allowed for tax purposes but that has not been deducted in the profit and loss account. PCTCT In the United Kingdom tax system, and more specifically for UK corporation tax purposes, PCTCT stands for "profits chargeable to corporation tax," a UK term for taxable profits. Since the enactment of 2010's Corporation Tax Act (CTA 2010) in March 2010, the profits of a company of an accounting period on which corporation tax is chargeable has been defined as the company's "taxable total profits" of the

neg: Corporation tax in the Republic of Ireland up until the Irish economic crisis in 2009. In the 1998 Budget (in December 1997) Finance Minister, Charlie McCreevy introduced the legislation for a new regime of corporation tax that led to the introduction of the 12.5% rate of corporation tax for trading income from 1 January 2003. The legislation was contained in section 71 of the Finance Act 1999 and provided for a phased introduction of the 12.5% rate from 32% for the financial year 1998 to 12.5% commencing from 1 January 2003. A higher rate of corporation tax of 25% was introduced for passive income, income from a

neg: Tampon tax of Parliament Dawn Primarolo saying that this reduction was "about fairness, and doing what we can to lower the cost of a necessity." This is the lowest rate possible under the European Union's value added tax law, which as of 2015 does not allow zero rates. The UK Independence Party raised the issue in the 2015 general election with promises to withdraw from the European Union and allow the zero rate. Prime Minister David Cameron commented, when prompted, that the tampon tax campaign was "long-standing" and a complicated issue within the European Union. In England, one in ten women between

neg: PCTCT PCTCT In the United Kingdom tax system, and more specifically for UK corporation tax purposes, PCTCT stands for "profits chargeable to corporation tax," a UK term for taxable profits. Since the enactment of 2010's Corporation Tax Act (CTA 2010) in March 2010, the profits of a company of an accounting period on which corporation tax is chargeable has been defined as the company's "taxable total profits" of the period (section 4(2) CTA 2010), which is frequently abbreviated to TTP. A company's taxable total profits are derived from a company's profit as shown in the profit and loss account in its

neg: Advance corporation tax Advance corporation tax In the United Kingdom, the advance corporation tax (ACT) was part of a partial dividend imputation system introduced in 1973 under which companies were required to withhold tax on dividends before they were distributed to shareholders. The scheme was similar to the way banks were required to withhold an amount at a set rate on interest earned on bank deposits before it is paid to the account holder. In general, this payment meant that the recipients of the dividend were considered to have already paid basic rate tax on the dividend income. Non-taxpayers, such as pension funds,

neg: Economy of Wales percentage of the local workforce (35.4%) in Swansea. The decline in Welsh GDP per person (relative to the UK average) over recent years has prompted policy debate. There have been suggestions – for example, by Plaid Cymru – that Wales should attempt to emulate the Irish 'Celtic Tiger' model, particularly its low corporation tax rates, to stimulate investment and growth. However, economists such as Nicholas Crafts and John Bradley have argued that the low Irish corporation tax rate was only effective in the very specific demographic and historical circumstances of Ireland in the late 1980s and 1990s, and that such

neg: Corporation tax in the Republic of Ireland TP–based BEPS tool users are the life sciences manufacturers. The "headline" tax rate is the rate of taxation that is applied to the profits that a tax-code deems to be taxable after deductions. The "effective" tax rate is the rate of taxation implied by the actual quantum of tax paid versus profits before all deductions are applied. The gap between the Irish corporate "headline" rate of 12.5%, and the much lower Irish corporate "effective" rate of 2–4%, is a source of controversy: The Irish State asserts Ireland's ETR similar to the Irish "headline" CT rate of 12.5%. This is an

neg: Corporation tax in the Republic of Ireland Tax Cuts and Jobs Act (TCJA) overhauled the U.S. tax-code and replicated many of the changes the UK made to their tax-code in 2009–2012 to successfully combat inversions (see below). In particular, the TCJA moved the U.S to a hybrid–"territorial tax" system, reduced the headline rate from 35% to 21% and introduced a new GILTI–FDII–BEAT regime designed to remove incentives for U.S. multinationals to execute corporate tax inversions to Ireland. In December 2017, U.S technology firm Vantiv, the world's largest payment processing company, confirmed it had abandoned its plan to execute a corporate tax inversion to Ireland. In Q1 2018,

neg: United Kingdom corporation tax third and fourth quarterly instalments are merged, including the supplementary 10% charge. In the financial year 2004–2005, approximately 39,000 companies paid corporation tax at the main rate. These 4.7% of active companies are responsible for 75% of all corporation tax receipts. Around 224,000 companies paid the small companies rate, with 34,000 benefiting from marginal relief. 264,000 were in the starting rate, with 269,000 benefiting from the lower band of marginal relief. The total revenue was £41.9bn from 831,885 companies. Only 23480 companies had a liability in excess of £100,000. HMRC has one year from the normal filing date, which is

neg: City A.M. that London and the south-east should be entitled to a greater rebate of UK tax revenue and has approved of the principle of London's becoming an independent city state. He also proposed a libertarian tax policy abolishing all personal and corporation taxes and introducing a single income tax rate of 30% on personal earnings, dividends, rent and interest. Heath's stance reflected the paper's classic liberal / libertarian philosophy, with a focus on capitalism and market forces as the drivers of economic and social progress. The paper's front page is dominated by a large capitalised banner headline reminiscent of a traditional

neg: United Kingdom corporation tax United Kingdom corporation tax In the United Kingdom, corporation tax is a corporate tax levied in the United Kingdom on the profits made by UK-resident companies and on the profits of entities registered overseas with permanent establishments in the UK. Until 1 April 1965, companies were taxed at the same income tax rates as individual taxpayers, with an additional profits tax levied on companies. Finance Act 1965 replaced this structure for companies and associations with a single corporate tax, which took its basic structure and rules from the income tax system. Since 1997, the UK's Tax Law Rewrite Project has

neg: United Kingdom corporation tax Union listed companies have to prepare their financial statements using the "International Financial Reporting Standards" ("IFRS"), as modified by the EU. Other UK companies may choose to adopt IFRS. Corporation tax law is changing so that, in the future, IFRS accounting profits are largely respected. The exception is for certain financial instruments and certain other measures to prevent tax arbitrage between companies applying IFRS and companies applying UK GAAP. Tax avoidance is the legitimate reduction of tax through tax planning and/or usage of legal provisions. Unlike most other countries, most UK tax professionals are accountants rather than lawyers by training.

neg: Corporation tax in the Republic of Ireland "patent box"), and re-structure of "controlled foreign corporation" (CFC) rules. By 2014, the UK "HMRC" reported that most of the UK multinationals that had inverted to Ireland had either returned to the UK (e.g., WPP plc, United Business Media plc, Henderson plc), or were about to be acquired by U.S. multinationals as part of a U.S. tax inversion (e.g. Shire plc). The UK corporate tax reforms not only reversed many of Irish tax inversions but in 2014, the "Wall Street Journal" reported that "In U.S. tax inversion Deals, U.K. is now a winner". , the UK had received the 3rd–largest

neg: Corporation tax in the Republic of Ireland consistently been between 10 and 15% of Total Irish Tax, the additional employment contribution made by U.S. multinationals in Ireland, has led to strong growth in overall Irish Total Taxes. The top 50 Irish companies, ranked by 2017 Irish registered revenues, are as follows: From the above table: The tax schemes used by U.S. multinationals in Ireland are called base erosion and profit shifting (BEPS) tools by tax academics. Whereas Ireland's "headline" corporation tax rate is 12.5%, Ireland's BEPS tools enable an effective tax rate of 0% to 3% to be achieved, depending on which BEPS tool is used. Ireland

neg: United Kingdom corporation tax the Corporation Tax, which re-introduced aspects of the old system. Corporation Tax was charged at a uniform rate on all profits, but additional tax was then payable if profits were distributed as a dividend to shareholders. In effect, dividends suffered double taxation. This method of corporation tax is known as the classical system and is similar to that used in the United States. The effect of the tax was to revert to the distribution tax in operation from 1949 to 1959: dividend payments were subject to higher tax than profits retained within the company. Finance Act 1965 also introduced a

neg: Guinness Brewery the "Sunday Independent" again reported that Diageo chiefs had met with Tánaiste Mary Coughlan, the deputy leader of the Government of Ireland, about moving operations to Ireland from the UK to benefit from its lower corporation tax rates. Several UK firms have made the move to pay Ireland's 12.5 per cent rate rather than the UK's 28 per cent rate. Diageo released a statement to the London Stock Exchange denying the report. St. James's Gate in Dublin was traditionally a main starting point for Irish pilgrims to begin their journey on the Camino de Santiago (Way of St. James). The

neg: Taxation in Iran the profits of corporate commercial entities has been introduced. This rate replaces the old corporation tax of 10 per cent and progressive rates of income tax (12-54 per cent) on reserves and distributable income. Apart from the 25 per cent corporation tax and the 0.3 per cent Chamber of Commerce tax no more taxes will be payable by the corporate entity or the shareholders. The new rate of corporation tax will also apply to joint venture corporate entities registered in Iran. The tax incidence will therefore be on the corporate entity and not on the shareholder. The calculation of the

neg: Research and Development Expenditure Credit cent payable credit rate equates to a net benefit post-tax of 7.7 per cent of eligible expenditure for large companies (at 23 per cent corporation tax from April 2013). The definitions of large and small company size are driven by the EU classifications (and adjusted for UK R&D Tax Credit purposes) including revenues, number of employees and balance sheet assets. The Chancellor of the Exchequer announced in his 2014 Autumn Statement that the taxable credit available to companies claiming under the RDEC regime has been increased from 10% to 11% providing an after tax benefit of 8.8% of the qualifying

neg: Taxation in Germany and foundations. Sole proprietorships and partnerships are not subject to corporation tax: profits earned by these set-ups are attributed to their individual partners and then taxed in the context of their personal income tax bills. Corporations domiciled or managed in Germany are deemed to have full corporation tax liability. This means that their domestic and foreign earnings are all taxable in Germany. Some corporate enterprises are exempted from corporation tax, e.g. charitable foundations, Church institutions, and sports clubs. As of 1 January 2008, Germany’s corporation tax rate is 15%. Counting both the solidarity surcharge (5.5% of corporation tax) and trade

neg: Research and Development Tax Credit as at 2010 . The current EC recommendation of what constitutes a small or medium-sized enterprise was published in 2003 as 2003/361/EC. It replaced an older definition from 1996. The new recommendation was brought into effect for R&D tax relief purposes on 1 January 2005. The EC SME thresholds were extended by UK legislation at 1 August 2008 (Corporation Tax Act 2009: Sections 1119 - 1121). The existing SME thresholds for UK R&D Tax Relief are as follows: In effect, to fall within the SME definition, the enterprise must stay below the staff headcount ceiling and fall below at least

neg: Taxation of Chargeable Gains Act 1992 by the highest rate of income tax which that person pays. If the person is a higher-rate tax payer, then the higher rate of income tax (currently 40%) is charged on the gain. Each year a natural person has an amount of gain, fixed by law, which is exempt from tax. By contrast, for bodies corporate, the chargeable gain is treated as additional profits for the accounting period in question. The capital gains tax is charged as additional corporation tax. Bodies corporate have no allowance for gains free from tax. Various reliefs from capital gains tax exist. These include indexation

neg: S corporation receipts tax (1.415%), but not the net profits tax (3.8907%). S corporations also benefit from Pennsylvania's flat personal income tax of 3.07% instead of the high corporation tax rate of 9.99%. S corporation An S corporation, for United States federal income tax purposes, is a closely held corporation (or, in some cases, a limited liability company (LLC) or a partnership) that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. In general, S corporations do not pay any income taxes. Instead, the corporation's income or losses are divided among and passed

neg: Tax Cuts and Jobs Act of 2017 tax rate (35%) for income earned in any country (less a credit for taxes paid to that country), each subsidiary pays the tax rate of the country in which it is legally established. In other words, under a territorial tax system, the corporation saves the difference between the generally higher U.S. tax rate and the lower rate of the country in which the subsidiary is legally established. "Bloomberg" journalist Matt Levine explained the concept, "If we're incorporated in the U.S. [under the old global tax regime], we'll pay 35 percent taxes on our income in the U.S. and Canada and

neg: United Kingdom corporation tax than the basic rate allowance, no further tax would be paid. The number of new companies being formed in 2002–2003 reached 325,900, an increase of 45% on 2001–2002. The fact that individuals operating in this manner could potentially pay no tax at all was felt by the government to be unfair tax avoidance, and the 2004 Budget introduced a Non-Corporate Distribution Rate. This ensured that where a company paid below the small companies' rate (19% in 2004), dividend payments made to non-corporates (for example, individuals, trusts and personal representatives of deceased persons) would be subject to additional corporation tax, bringing

neg: Corporate tax corporation tax to 22%. The OECD average is 22%. The first column in the table below represents corporate income tax rates mandated by the central government. The second column lists total combined tax rates which, in addition to the government tax rate, may also include various provincial, state and local taxes. For example, the 2015 provincial corporate tax rates in Canada range from 11.5% to 16% in addition to the federal tax rate of 15%, unless taxable profits of small corporations are low enough to qualify for a lower tax rate. The corporate tax rates in other jurisdictions include: Most

neg: Tax advantage corporate-entity. Partnerships are not taxed, but corporations are. For LLCs taxed as partnerships the income is taxed to the partners. For a corporation or an LLC taxed like a corporation, the entity is subject to tax and dividends on after tax income are also taxed to the shareholders of the corporation or the members of the LLC. A capital gains tax can be thought of as tax advantaged or benefitted. When an investor receives profit by selling a capital asset, such as the sale of stock, this is taxed at the rate of the capital gains tax, which is often

neg: Tax rate generate a tax credit in the UK and Canadian system, the effective tax rate is the net effect of both - the net tax divided by the actual dividend's value. For example: When contributions are made to Tax Deferred Accounts the reduced tax base will result in reduced taxes calculated at the statutory marginal rate. But the reduction in the tax base may also affect qualification for other government benefits. The difference in those benefits is added to the numerator to increase the effective marginal rate due to the contribution. Tax rates can be presented differently due to differing definitions

neg: United Kingdom corporation tax the corporation tax paid up to 19%. For example, a company making £10,000 profit, and making a £6,000 dividend distribution to an individual and £4,000 to another company would pay 19% corporation tax on the £6,000. Although this measure substantially reduced the number of small businesses incorporating, the Chancellor in the 2006 Budget said tax avoidance by small businesses through incorporation was still a major issue, and scrapped the starting rate entirely. The starting point for computing taxable profits is profits before tax (except for a life assurance company). The rules for calculating corporation tax generally ran in parallel with

neg: Taxation in the United Kingdom Other Income) Act 2005, which also repealed Schedule F. For corporation tax purposes, the Schedular system was repealed and superseded by the Corporation Tax Acts of 2009 and 2010. The highest rate of income tax peaked in the Second World War at 99.25%. This was slightly reduced after the war and was around 97.5 percent (nineteen shillings and sixpence in the pound) through the 1950s and 60s. In 1971, the top rate of income tax on earned income was cut to 75%. A surcharge of 15% on investment income kept the overall top rate on that income at 90%. In

neg: United Kingdom corporation tax than the ACT rate), and thus the £70 received by the individual actually represented pre-tax profits of £145.83. Accordingly, only part of the double taxation was relieved. ACT was not payable on dividends from one UK company to another (unless the payor company elected to pay it). Also, the recipient company was not taxed on that dividend receipt, except for dealers in shares and life assurance companies in respect of some of their profits. As the payor company would have suffered tax on the payments it made, the company that received the dividend also received a credit that it could

neg: Third Rutte cabinet act has not delivered what was expected. The cabinet also deconstitutionalised the method of appointment of mayors and King's Commissioners, thus allowing the method to be changed by law. The cabinet plans to simplify income tax, reducing the number of tax brackets to two. Income below 68,600 would be taxed at 36.9%, and income from 68,600 onward at 49.5%. There are also plans to increase the lower VAT rate from 6 to 9%. A plan to abolish dividend tax proved so controversial that it was discarded in October 2018. Instead, the cabinet will now lower corporation tax more than was

neg: Corporation tax in the Republic of Ireland rate was phased-out and ended on 31 December 2003 for new schemes, with expiry for all existing IFSC schemes in 2005, and all existing manufacturing schemes by 2010. To counter the EU's decision to withdraw State-aid approval for Ireland's special rate, the Irish State reduced the Irish "standard rate" of corporation tax from 40% in 1995, to 12.5% by 2003; splitting the standard rate into trading and non-trading rates in 2000. Ireland's corporate tax code has gone through distinct phases of development, from building a separate dentify from the British system, to most distinctively, post the creation of the Irish

neg: 10p tax rate 10p tax rate The starting rate of income tax, often known as the 10p rate, was a special rate of personal income taxation in the United Kingdom that existed from 1999 to 2008. The starting rate was the lowest rate of income tax in the United Kingdom. It meant that certain incomes above the personal allowance would be taxed at a basic rate of 10%, which meant a reduced rate compared with the previous basic UK income tax rate of 23%. The reduced tax rate for low incomes was introduced in Gordon Brown's third budget as Chancellor of the Exchequer.

neg: United Kingdom corporation tax all the different types of losses may be set off within the computations of a company. A detailed explanation of these can be found in: "United Kingdom corporation tax loss relief". The UK does not permit tax consolidation, where companies in a group are treated as though they are a single entity for tax purposes. One of the main benefits of tax consolidation is that tax losses in one entity in a group are automatically relievable against the tax profits of another. Instead, the UK permits a form of loss relief called "group relief". Where a company has losses arising

neg: History of taxation in the United Kingdom income tax net in 1965 when corporation tax was introduced. These changes were consolidated by the Income and Corporation Taxes Act 1970. Also the schedules under which tax is levied have changed. Schedule B was abolished in 1988, Schedule C in 1996 and Schedule E in 2003. For income tax purposes, the remaining schedules were superseded by the Income Tax (Trading and Other Income) Act 2005, which also repealed Schedule F completely. The Schedular system and Schedules A and D still remain in force for corporation tax. The highest rate of income tax peaked in the Second World War at

neg: Economy of California west and one of the highest in the nation. Banks and financials have a 10.84% flat tax applied to their profits. S corporation rate is 1.5% while S corporation bank and financial rate is 3.5%. California property tax rates are ranked 17th highest in the nation having been capped by the Proposition 13 overwhelmingly passed in 1978. Property taxes in California amounted to over $54.0 billion (2011) and are one of the largest taxes in California of which about $12.0 billion of the $54.0 billion collected was for voter approved "extras". The property tax, despite being used primarily to finance

neg: Corporation tax in France Corporation tax in France Corporate tax in France deals with the tax payable in France on the profits earned by companies. In general, any company is subject to 33.3% corporate tax ("Impôt sur les Sociétés") on its worldwide profits. However, certain items of income are exempt from tax and certain costs are non-deductible. Furthermore, the tax rate is planned to be reduced to 28% by 2020. Net corporate tax revenues in 2016 amounted to 30 billion euros (after tax credits & deductions). A company is subject to French corporate tax on profits generated in France, in addition to any profit

neg: Research and Development Expenditure Credit with a payable rate of 10 per cent for R&D expenditure incurred after 1 April 2013 (an increase on the original proposal of a 9.1 per cent payable credit). This credit is designed to make R&D relief more visible to those making R&D budgeting and investment decisions. It should also provide better cash flow for companies with no corporation tax liability, and thus should promote the UK as the preferred location for multi-national corporations deciding where to site their R&D operations. It will also help to improve corporate earnings because it now appears above the tax line. The 10 per

neg: Mighty Corporation If they cannot prove their allegation, then they may be liable for libel or slander." She said PMI’s current hurdles in the Philippine market could have been avoided if PMFTC agreed to the government’s original proposal of adopting a unitary tax system, which aimed to remove the tax rate gap between low- and high-priced cigarette brands. The BIR chief explained a unitary rate system on cigarette could have been prevented smokers from down-shifting from high-priced brands, such as Marlboro, Winston and Lucky Strike, to low-priced brands, like Mighty. Mighty Corporation Mighty Corporation is a Filipino corporation and was the second

neg: Controlled foreign corporation group of companies) owns 40% or more of voting interests. A controlled company is a controlled foreign company if it is tax resident outside the UK and it is subject to a charge to tax less than it would have been were it a UK resident company. This is determined by comparing the actual charge to tax to a corresponding UK tax. In computing the corresponding tax, lower UK rates of tax on small companies are considered. Further, there are taken into account certain adjustments to income and fiscal years. Certain exemptions apply. Generally, a foreign company will not be

neg: Income tax in Scotland was specifically authorised by the second question of the 1997 devolution referendum. In any event, no Scottish Government ever chose to use the variable rate, and left tax rates the same as they were in the rest of the UK. Following the passage of the Scotland Act 2012, the Scottish Parliament was given greater powers over income tax. In the 2016/17 tax year it had to set a Scottish Rate of Income Tax (SRIT). The idea of the power was that the UK tax rate would be reduced by 10%, with the block grant being reduced by an equivalent amount.

neg: Corporation tax in France allocated to France by virtue of international tax treaties, after taking into account tax deductible costs. The 2017 French corporate tax rate was 15% of the taxable income up to and including €38,120, 28% up to €75,000 and above which the rate is 33.3%. By 2020, the whole taxable income of all companies will be taxed at 28%. On 7 November 2017 the French National Assembly approved a new corporate tax.<br> Business with more than €1 billion in sales a year are subject to pay a tax rate with 38.3% instead of 33.3%. If a firm makes more revenue than

neg: 2013 United Kingdom budget 2013 United Kingdom budget The 2013 United Kingdom budget was delivered by George Osborne, the Chancellor of the Exchequer, to the House of Commons on Wednesday 20 March 2013. It was the fourth budget of the Conservative-Liberal Democrat coalition government that was formed after the 2010 general election, and also the fourth to be delivered by Osborne. Its key points included an increase in the personal allowance, a reduction of the rate of corporation tax, a freeze of the rate of fuel duty, and the cancellation of the duty escalator on beer. The personal allowance each UK employee is entitled

neg: Financial transaction tax Reserve Tax (SDRT) at a rate of 0.5% on share purchases, raising around €3.8bn per year, of which 40% is paid by foreign residents. The tax is charged whether the transaction takes place in the UK or overseas, and whether either party is resident of the UK or not. Securities issued by companies overseas are not taxed. This means that—just like the standard stamp duty—the tax is paid by foreign and UK-based investors who invest in UK incorporated companies. In other words, the tax applies to all companies which are headquartered in the UK, albeit there is a relief for

neg: United Kingdom corporation tax of a tax'. ACT that had been incurred prior to 1999 could still be set off against a company's tax liability, provided it would have been able to set it off under the old imputation system. In order to keep the stream of payments associated with advance corporation tax payment, 'large' companies (comprising the majority of corporation tax receipts) were subjected to a quarterly instalments scheme for tax payment. On its introduction in 1965, corporation tax was charged at 40%, rising to 45% in the 1969 Budget. The rate then fell to 42.5% in the second Budget of 1970 and

neg: Life insurance planning would usually seek professional advice from an Independent Financial Adviser and/or a solicitor. Although available before April 2006, from this date pension term assurance became widely available in the UK. Most UK insurers adopted the name "life insurance with tax relief" for the product. Pension term assurance is effectively normal term life assurance with tax relief on the premiums. All premiums are paid at a net of basic rate tax at 22%, and higher-rate tax payers can gain an extra 18% tax relief via their tax return. Although not suitable for all, PTA briefly became one of the most

neg: S corporation fees may exceed the S corporation net income tax. S Corporations operating in the City of Wilmington are not subject to the city's 1.25% net profits tax, however, S corporation employee wages are subject to the city's 1.25% wage tax. In New York City, S corporations are subject to the full corporate income tax at an 8.85% rate. However, if the S corporation can demonstrate that a portion of its business was done outside the city, that portion will not be subject to the additional tax. In Philadelphia, S corporations are subject to the city's income tax (6.35%) and gross

neg: Arron Banks Iannucci if he did not get an apology within a week. Asked if his companies paid full corporation tax, Banks said: "I paid over £2.5m of income tax last year ... My insurance business, like a lot of them, is based in Gibraltar but I've got UK businesses as well that deal with customers and pay tax like everyone else." One of the UK businesses of which Banks is director, Rock Services Ltd, had a turnover of £19.7m in 2013 and paid corporation tax of £12,000. The company deducted £19.6m in "administrative expenses", and the main activity appears to be

neg: Limited liability partnership other's actions. As with a limited company or a corporation, members in an LLP cannot, in the absence of fraud or wrongful trading, lose more than they invest. In relation to tax, however, a UK LLP is similar to a partnership, namely, it is tax-transparent. That is to say it pays no UK corporation tax or capital gains tax. Instead, LLP income and/or gains are distributed gross to partners as self-employed persons, rather than as PAYE employees. Partners receiving income and/or gains from an LLP are liable for their own taxation. There is no requirement for the LLP agreement even

neg: United Kingdom corporation tax 40% in 1971. In 1973, alongside the introduction of advance corporation tax (ACT), Conservative chancellor Anthony Barber created a main rate of 52%, together with a smaller companies' rate of 42%. This apparent increase was negated by the fact that under the ACT scheme, dividends were no longer subject to income tax. The 1979 Conservative Budget of Geoffrey Howe cut the small companies' rate to 40%, followed by a further cut in the 1982 Budget to 38%. The Budgets of 1983–1988 saw sharp cuts in both main and small companies' rates, falling to 35% and 25% respectively. Budgets between 1988