Payment and filing.

Companies which do not pay at the full  rate (ie profits below £1.5m) settle their CT liability 9 months and a day after the end of the accounting period.  

Large companies generally make payments on account of CT 6.5 months, 9.5 months, 12.5 months and 15.5 months after the start of a 12 month accounting period, with interest running until final settlement of the periods’ liability.

All companies file returns 12 months after the end of the period.

Taxation and dividends

Companies are not charged to CT on dividends received from other UK companies. Individuals and trusts receive dividends with a 10% “Tax Credit”. The dividend plus the tax credit (100/90 of the amount received) is treated as taxable income and the 10% tax credit settle some or all of the tax liability. But a tax payer with no liability can obtain a repayment of the tax credit from the Revenue – it can only be used to settle liability.

Substantial shareholdings

Trading companies do not pay tax on disposal of “ substantial share holdings”, which are 10% holdings in other trading companies which have been held for at least 12 months.

Corporate venturing scheme

Companies can receive a 20% tax credit for investment in new shares in qualifying “corporate ventures”. Such companies must be owned at least 20% by individuals, and the corporate investor must own not more than 30% to qualify.