ABSTRACT
Council tax 13 29
Capital Capital gains 3 Inheritance 2 Stamp duties 6
11 322
This section deals mainly with corporation tax, the tax on company profits. It raises about one-tenth of total tax revenue.
Companies pay corporation tax at 30 per cent* on taxable profits (20 per cent for small profits). Profits earned overseas by UK companies are subject to overseas tax, but double taxation relief normally offsets UK tax thereon. In computing the amount of ‘taxable profits’, companies adjust their reported ‘book’ profits before tax to substitute tax writing-down allowances for book depreciation, and for other reasons.
