Capital Taxes
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
Corporation Tax rates
|
Rates for financial years starting on 1 April
|
|
Rate
|
|
2011
|
2012
|
2013
|
|
Small Profits Rate*
|
|
20%
|
20%
|
|
|
Small Profits Rate can be claimed by qualifying companies with profits
at a rate not exceeding
|
|
£300,000
|
£300,000
|
|
|
Marginal Relief Lower Limit
|
|
£300,000
|
£300,000
|
|
|
Marginal Relief Upper Limit
|
|
£1,500,000
|
£1,500,000
|
|
|
Standard fraction
|
|
3/200
|
1/80
|
|
|
Main rate of Corporation Tax
|
|
26%
|
24%
|
23%
|
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%
|
0.00%
|
|
Higher rate
|
32.5%
|
£34,371
|
£150,000
|
22.5%
|
25.00%
|
|
Additional rate
|
42.5%
|
£150,001
|
-
|
32.5%
|
36.11%
|