The Corporation tax is charged on the profit of a company resident in the UK by reference to the total profit arising in each accounting period. A company resident in the UK is liable to UK corporation tax on its worldwide profits, including as chargeable gains.
A company which is incorporated in the UK is regarded as resident in the UK for UK corporation tax purposes. A company incorporated outside the UK is resident in the UK if its central management and control is exercised in the UK.
Rates Corporation taxCorporation Tax Rates 2013 2012 2011 2010 Main rate 23% 24% 26% 28% Small Profit rate 20% 20% 21% 21% Marginal Relief(Standard Fraction) 1/100 1/100 3/200 7/400 Augmented Profit Taxable Total Profit +Franked Investment Income
Standard fraction * (U-A) * N/A
U= Upper limit(currently £1,500,000)
A= Augmented profit
N= Taxable total profit
Long Period of Account
Where a period of account exceeds 12 months, it must be divided into two accounting periods: the first will comprise the first 12 months and second will comprise the balance.