Corporation Tax (CT)
|Corporation Tax rate||19%||20%|
- Most companies must pay their Corporation Tax within nine months and a day after the end of the accounting period.
- Large companies or groups generally make four quarterly payments on account of Corporation Tax, starting in the seventh month after the start of a 12-month accounting period. The payment is made on the 14th day of the relevant month, with interest running on any balance due until final settlement of the period’s liability.
- All companies must file Corporation Tax returns online 12 months after the end of the accounting period.
Research and Development
|SME enhanced deduction||130%||130%|
|Large company above the line credit (RDEC)||11%||11%|
- The above enhanced deduction is for qualifying revenue expenditure on qualifying R&D projects; various conditions apply to both terms.
- Where an SME makes a loss it can surrender that loss for a payable tax credit worth 14.5% of the loss.
- RDEC is a taxable expenditure credit for qualifying R&D.
|Intangible assets: goodwill, know-how and patent rights||Deduction given according to depreciation in the accounts, unless the circumstances in Note 1 below apply.|
|Patent income||Reduced rate of CT, down to a minimum of 10%.|
|Shares held for at least 12 months in other trading companies||No gains on disposal if at least 10% of company’s share capital held.|
|Creative industries producing: films, high-end or children’s TV programmes, video games or theatre productions||Enhanced deductions for certain expenditure and losses surrendered for payable tax credits.|
- No deduction available for any goodwill acquired from 8.7.2015 and to goodwill on incorporation from 3.12.2014.
- The above is a brief summary of selected reliefs available to companies; other conditions apply in each case.