The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The patent box legislation states that a company may elect that any relevant IP profits of a trade for accounting periods during which it is a qualifying company are chargeable at a lower effective rate of corporation tax (currently an effective rate of 10%).
Such an election is given effect by allowing a deduction to be made in calculating the profits of the trade for corporation tax purposes. However, it is possible that the result of the calculations performed in arriving at the relevant IP profits is negative. This figure is known as a relevant IP loss. In these circumstances, there are no profits from which the deduction can be made to give effect to the reduced patent box rate of corporation tax. See the following guidance notes for details of how relevant IP profits and losses are calculated (the correct method will depend upon when the first patent box election is made):
Calculating relevant IP profits ― from 1 July 2016
Calculating relevant IP profits ― existing claimants with no new IP rights
Calculating relevant IP profits ― existing claimants with new IP rights
CTA 2010, ss 357A(2), 357C(3), 357BF(4)
A company which has not already elected into the patent box regime is unlikely to make such an election for the first time during a loss making period. This is because the losses can only be relieved in a certain way (see below), which is more restrictive than other types of losses, such as trading losses. For example, a standal
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
The substantial shareholding exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. Conversely, if losses are generated by the disposal and the SSE conditions are
The basic rule is that all benefits provided to an employee by reason of their employment are taxable unless there is a specific exemption or other rule that means they are not chargeable to tax.ExemptionsThe main exemptions for employee benefits are in ITEPA 2003, ss 227–326B (Pt 4).Below is an
Normal due dateSmall companies (including marginal relief companies) are required to pay all of their corporation tax ― nine months and one day ― after the end of the chargeable accounting period.For example, where a chargeable accounting period ends on 31 December 2018, the due and payable date for
This guidance note provides details of quarterly instalment payments (QIPs) for corporation tax purposes and which companies need to pay their tax liabilities in this manner.Generally, corporation tax is payable nine months and one day after the end of the relevant accounting period. However, large
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.