- Country:United Kington
- Date:May 2019
- Tags:tax, general informations
United Kington Guide
At a glance
Corporate Income Tax Rate (%) 19 (a)(b)(c)
Capital Gains Tax Rate (%) 19 (d)
Branch Tax Rate (%) 19
Withholding Tax (%)
Interest 20 (e)(f)
Royalties 20 (e)
Branch Remittance Tax 0
Net Operating Losses (Years)
Carryforward Unlimited (g)
(a) The rate of corporation tax is 19% for both large and small companies. Legislation has been enacted to decrease the rate of corporation tax to 17%, effective from 1 April 2020. The main rate of corporation tax for ring-fence profits (that is, profits from oil extraction and oil rights in the United Kingdom and the UK continental shelf) is 30% (small profits rate of 19%). The rates for ring-fence profits are not scheduled to change.
(b) The small profits rate of 19% for ring-fence profits applies in certain circumstances if taxable profits are below GBP300,000. This benefit is phased out for taxable profits from GBP300,000 to GBP1,500,000. These limits are reduced if associated companies exist.
(c) An additional 8% surcharge is levied on the profits of banks in excess of GBP25 million (before the offset of losses carried forward).
(d) Capital gains are subject to tax at the normal corporation tax rate. See Section B for details concerning the taxation of capital gains derived by nonresidents.
(e) This tax applies to payments to nonresidents and non-corporate residents.
(f) A 45% rate applies to compound interest received from the UK tax authorities in certain cases.
(g) The amount of annual profits that can be relieved by losses carried forward is limited to 50% from 1 April 2017, subject to an allowance of GBP5 million per group.