Advance Corporation Tax

Business, Legal & Accounting Glossary

Definition: Advance Corporation Tax


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.


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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.