Advance Corporation Tax

Business, Legal & Accounting Glossary

Definition: Advance Corporation Tax



Full Definition of Advance Corporation Tax


Advance Corporation Tax is the amount of tax paid by a company on the amount of profit distributed as dividend payments.

Companies pay their dividends net of this tax. Some institutions, charities and tax-free PEPs are able to reclaim the tax. However, Chancellor Gordon Brown abolished the payment of tax credits for pension schemes and other companies with immediate effect in his first budget on July 2nd, 1997. This unwelcome move left only PEP -holders and charities benefiting from the return of tax credits.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/advance-corporation-tax/
Modern Language Association (MLA):
Advance Corporation Tax. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 26, 2020 https://payrollheaven.com/define/advance-corporation-tax/.
Chicago Manual of Style (CMS):
Advance Corporation Tax. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/advance-corporation-tax/ (accessed: November 26, 2020).
American Psychological Association (APA):
Advance Corporation Tax. PayrollHeaven.com. Retrieved November 26, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/advance-corporation-tax/

Definition Sources


Definitions for Advance Corporation Tax are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 15th February, 2020 | 0 Views.