Corporation Tax & Income Tax

The tax efficient extraction of profits is the perpetual challenge for all entrepreneurs.
   
Despite recent anti-avoidance legislation following the well-publicised Dextra case [2005] UKHL 47, planning opportunities still exist if the correct structures are adopted coupled with accuracy in implementation. 
   
Corporation tax        
  

Rates for financial years starting on 1st April
Rate 2012 2013
Small Profits Rate 20%  
Small Profits Rate can be claimed by qualifying companies with profits at a rate not exceeding £300,000  
Marginal Relief Lower Limit £300,000  
Marginal Relief Upper Limit £1,500,000  
Standard fraction 1/100  
Main rate of Corporation Tax* 24%    23%
Special rate for unit trusts and open-ended investment companies 20%  

Dividends

     
The dividend tax rates for 2012/13 are as follows:
    
     

Tax band

Tax rate

From

To

Gross rate
(Tax rate – 10% credit)

Equivalent
net rate

Basic rate

10%

0

£34,370

0%

Higher rate

32.5%

£34,371

£150,000

22.5%

25.00%

Additional rate

42.5%

£150,001

32.5%

36.11%

Both DoTAS and Non DoTAS solutions are available. Contact us in the first instance