বুধবার, ২৮ সেপ্টেম্বর, ২০১১

Corporation ? A Legal Overview

What is the corporation?
Before 1965, companies paid taxes at the same rates and subject to the same rules as taxes on individual incomes. In 1965 the corporation tax was introduced, in which the profits that a company has made ??in a fiscal year were calculated and then these profits were taxed at a lower rate.

Corporation tax rates
The corporation is currently using two different rates. The Federal funds rate> Corporation tax is currently 28% and this is levied on profits over ? 300,000, although the marginal relief between ? 300,000 and ? 1.5 million can pay a reduced tax rate on retained earnings are required.

To try to encourage entrepreneurship and support economic growth, the government has set a lower rate of corporation tax for small businesses, small gains again and it's currently 21% on profits up to 300,000 ?. Between ? 300,000and ? 1,500,000

Business Tax Reform
The coalition government has recently announced a five-year plan for corporate tax reform, and that includes even a year on year reduction in the main rate of corporation tax by one percentage point per year until 2014, when the rate will remain at 24%. In addition, the lower tax rate will be reduced to 20%.

What is the combination of gains and losses from different companies?
Inmany foreign jurisdictions, the principle of "fiscal consolidation" companies that belong to the same group as a single entity for purposes of the calculation and collection of taxes to be treated. This means that damage suffered by businesses of the group generated automatically compensated by the profits of other group companies.

In the fiscal consolidation in the United Kingdom is not allowed, but similar effects can be achieved by two kinds of tax breaks ? "group relief"and "consortium relief."

Rescue team

Each company in a group that is a loss of these losses can any other group companies, which for these losses with the profits it generates, can be compensated. To qualify for this relief, both companies are members of the same "group 75%" ? this means that they have a common parent and at least 75% of the shares of each company in the group must be held by other companiesGroup.
Consortium relief

This applies even if a subsidiary is a consortium of parents, where each parent company owns at least 5% of the subsidiary and parent company of these together for 75% of the subsidiary owned. This could be the case, want to work in the rival company, a company that had the same basic services for all of them (for example, where a rival Internet service providers together, the company that buying the property owners to buy atPhone lines that use all).
If the branch is a loss, this loss of parent companies in proportion to their holdings and transferred to the parent companies may be compensated for this loss against the gains.

Companies can the efficiency of the tax system by consulting a tax lawyers, notaries public to reach.

Source: http://legal-corporations-llc.chailit.com/corporation-a-legal-overview-5.html

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